China Eases Oil Market Pressure as OPEC+ Influence Fades

China's emergence as an oil market force has left OPEC+ struggling to maintain its influence, especially after the Iran war. The conflict has disrupted oil supplies and reduced OPEC+'s ability to quickly raise or cut supply.

The Organization of the Petroleum Exporting Countries and its allies accounted for about 40% of global oil output in July, down from more than 48% before the US and Israel attacked Iran in late February. The core group of seven producers, including Saudi Arabia and Russia, made up only a quarter of world oil output.

The war has effectively shut the Strait of Hormuz, a key export route for top OPEC producer Saudi Arabia and other members such as Iraq and Kuwait.