Seven core members of OPEC+ agreed Sunday to raise collective output targets by 188,000 barrels per day starting in August, marking a fifth consecutive monthly increase as the group continues rolling back production cuts introduced in 2023.
The countries involved are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, OPEC said in a statement
The decision comes as shipping through the Strait of Hormuz — the waterway that carried roughly one-fifth of the world’s oil before the conflict — shows early signs of recovery. Data from ship-tracking firm Kpler, reported by The Wall Street Journal, put the strait’s daily crossing count at roughly 40 vessels on average in the days around July 2, with individual days ranging anywhere from 30 to 60 transits. That compares with roughly 130 daily crossings before the war began on Feb. 28.
The increase brings total quota additions to 940,000 barrels per day since the war began. With one more hike of similar size expected at the group’s Aug. 2 meeting, Reuters calculations show the seven members would complete the full reversal of their 2023 cuts. The strait’s closure following Iran’s retaliation for U.S. and Israeli strikes rendered the earlier quota hikes largely meaningless on the ground — OPEC’s own figures show collective group output cratered to 33.13 million barrels per day by May, a steep drop from the 42.77 million barrels per day recorded in February.