OPEC+ agrees 4th straight oil output hike since Hormuz closure

OPEC+ members agreed on Sunday to a fourth consecutive hike in their oil output targets, with a planned increase of 188,000 barrels per day starting in July. This decision follows similar increases in the preceding months. However, the group's actual oil production has seen a substantial decline, averaging 33.19 million barrels per day in April, a significant drop from the 42.77 million barrels per day recorded in February.

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the ongoing conflict in the Middle East is still stopping several of the group's members from pumping more.

The ongoing conflict in the Middle East continues to disrupt oil flows, particularly through the Strait of Hormuz, contributing to a major supply crisis. Several member nations are reportedly unable to meet their full export commitments. This challenging market environment has been further complicated by the United Arab Emirates' departure from OPEC after nearly six decades.

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The war has cut oil flows via the Strait of Hormuz, creating the world's biggest-ever supply crisis as key OPEC+ members including Saudi Arabia have been unable to supply customers in full since the end of February.

The seven core members of OPEC+ involved in output policy decisions are Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. These nations, along with the UAE when it was a member, have historically shaped the group's production strategies. While other OPEC+ meetings were scheduled for Sunday, sources indicated no changes to group-wide output policy were expected from those gatherings.

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This is the same as the June hike, which was adjusted down from monthly increases of 206,000 bpd in May and April to take into account the UAE exit.