Riyadh - Mubasher: OPEC+ has agreed a fourth raise in its combined crude oil production targets by 188,000 barrels per day (bpd) in July 2026, according to Reuters.
The US-Iran conflict has cut oil flows via the Strait of Hormuz, disabling key OPEC+ members, including Saudi Arabia, from supplying customers in full since the end of February. The world's biggest-ever supply crisis deepened when the UAE left the Organization of the Petroleum Exporting Countries after almost 60 years.
The decision was reached during a virtual meeting on Sunday involving Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman to review global oil market conditions and future demand prospects.
The countries said the additional 188,000 bpd adjustment forms part of the voluntary production cuts announced in April 2023 and will take effect next month.
From April through June, the participating countries increased their combined output quotas by nearly 600,000 bpd.
The producers emphasized that future increases could be adjusted, paused, or reversed depending on market conditions, reaffirming their commitment to maintaining oil market stability.
“An OPEC+ production increase means very little while the Strait of Hormuz remains closed," said Jorge Leon, an analyst at Rystad and a former OPEC official. “When the Strait of Hormuz reopens, the market could move very quickly from fear of shortage to fear of surplus."
