On July 5th, local time, the Organization of the Petroleum Exporting Countries + OPEC+ issued a statement stating that the organization has agreed to further increase production targets starting in August. This is in order to increase global supply, particularly as oil prices decline due to the gradual resumption of oil exports through the Strait of Hormuz.
Reuters reported on the same day that OPEC+ had reached a consensus at the online meeting they were holding, deciding to increase the daily production target quota by 188,000 barrels starting in August. Prior to this, OPEC+ had taken similar production increases in June and July.
OPEC+ consists of the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and 10 non-OPEC oil-producing countries, led by Russia. The seven core members increased their production quotas by nearly 800,000 barrels per day from April to July.
However, due to the military actions taken by the United States and Israel against Iran, shipping in the Strait of Hormuz was temporarily disrupted. This caused difficulties for oil tankers transporting oil from major OPEC+ members such as Saudi Arabia, Kuwait, and Iraq. As a result, the goal of increasing production remains largely on paper.
