OPEC+ agrees to raise its oil output targets by 188,000 barrels per day starting in August, following similar quota increases for June and July. The decision comes as oil flows through the Strait of Hormuz gradually recover after the disruption tied to the US and Israeli war involving Iran, which had limited tanker traffic for key OPEC+ producers such as Saudi Arabia, Kuwait and Iraq. Several reports say crude prices are easing, with Brent trading around the low-$70s per barrel, after having peaked much higher during the period of tighter supply.
While OPEC+ increases quotas, sources note that the additional supply has often remained “largely on paper” because production and exports are still affected by ongoing conflict-related disruptions. One report cites OPEC data showing output fell sharply in May compared with February, with recovery beginning in June. Another highlights rising Gulf exports and record Russian western-port shipments in June.
The broader market context also includes demand and supply factors beyond OPEC+, including weaker Chinese imports, higher non-Middle East exports, and a record strategic stock release coordinated by the IEA. OPEC+ also faces internal changes: the UAE has exited the group, and Iraq signals it wants higher quotas, while the seven core members continue unwinding earlier supply cuts.
