OPEC+ consists of 23 countries that manage 40% of the global oil supply and control around half of the world’s oil reserves|pat uriku|CC BY-NC-ND 2.0
The Organization of the Petroleum Exporting Countries (OPEC+) has agreed to raise oil production targets by 188,000 barrels per day (bpd) from August, extending its supply increases for the fourth straight month.
The alliance comprises 23 countries that manage 40% of global oil supply and control around half of the world’s oil reserves.
The latest increase comes as oil prices remain under pressure and exports through the Strait of Hormuz gradually recover following disruptions caused by the Iran conflict.
OPEC’s seven core producers—Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman—have already raised quotas by nearly 800,000 bpd between April and July. However, actual production has lagged due to the Middle East conflict, which temporarily disrupted exports.
OPEC data showed output fell to 33.13 million bpd in May before recovering in June.
Brent crude traded near $72 a barrel on Friday, down from more than $120 during the height of the conflict.
Weaker Chinese demand, higher supplies from producers outside the Middle East, and large global stock releases have kept prices subdued.
OPEC+ is expected to complete the rollback of its 2023 production cuts with another similar increase when it meets again on August 2.