OPEC+ Approves Further Oil Output Increase as Hormuz Exports Recover

OPEC+ has approved a further increase in oil output targets, set to take effect in August. The group announced on Sunday that quotas would be raised by 188,000 barrels per day. This move comes as global oil prices are declining, partly due to the gradual resumption of oil exports through the Strait of Hormuz. The seven core members of OPEC+, which includes Opec and allied producers like Russia, have already implemented significant quota hikes from April through July, adding nearly 800,000 barrels per day. However, the actual impact of these increases has been constrained. The ongoing US-Israeli conflict with Iran has disrupted tanker traffic through the Strait of Hormuz, affecting major OPEC+ members such as Saudi Arabia, Kuwait, and Iraq. OPEC data indicates that production fell to 33.13 million barrels per day in May from 42.77 million in February. Recovery began in June, aided by U.S. efforts to support exports from the United Arab Emirates.