OPEC+ countries to raise oil output by 188,000 bpd in July

Seven nations within the OPEC+ alliance have agreed to raise their combined crude oil output targets by 188,000 barrels per day for July. This increase mirrors the adjustment made in June and follows earlier monthly hikes of 206,000 barrels in May and April.

The decision was reached during a virtual meeting on Sunday by Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, who reviewed global market conditions. This latest adjustment represents the fourth monthly quota increase under the group's strategy to gradually phase out voluntary supply cuts.

OPEC+ countries reiterated their commitment to oil market stability, emphasizing a cautious approach and maintaining flexibility to increase, pause, or reverse these production adjustments. They also confirmed their intention to fully compensate for any overproduced volumes since January 2024, extending the compensation period until the end of December 2026.

While the group aims to manage market conditions, the physical realization of these increased barrels may be limited by factors such as the ongoing blockade of the Strait of Hormuz.