OPEC+ agrees another oil output increase for August
OPEC+ producers including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman agreed at a virtual meeting on July 5 to raise oil output by about 188,000 barrels a day in August, citing “global market conditions and outlook.” It is the fifth consecutive monthly increase, continuing the group’s reversal of production cuts made in 2023.
The decision comes as prices have fallen sharply. Brent crude traded near $72 a barrel on Monday — below pre-war levels — after briefly spiking above $126 in April during the Iran-Israel conflict. With that conflict winding down and the Strait of Hormuz reopened to shipping, supply pressure has eased: Saudi Arabia has roughly doubled its shipping volume since mid-June, and Iran has moved some 50 million barrels to market after the lifting of a naval blockade. Analysts note the quota increases are largely symbolic given how quickly real barrels are returning to market. The group is due to review output again on August 2.