OPEC+ Agrees to Raise Oil Production Amid Ongoing Disruptions

OPEC+ has agreed to increase oil production by 188,000 barrels per day from September, following an online meeting between key members. The decision was widely expected by analysts and comes as the region recovers from disruptions caused by the Middle East war.

The participating countries include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. They announced in a joint statement that they would implement a production adjustment of 188 thousand barrels per day. The increase is part of the unwinding of voluntary cuts introduced by OPEC+, which had reduced total output by nearly six million barrels per day.

Despite the decision to increase production, analysts are warning that normal export flows will not resume immediately due to ongoing disruptions in the Strait of Hormuz. Rystad Energy's Jorge Leon noted that 'today's decision changes little in the near term because (the Strait of) Hormuz remains constrained.' He predicted that the real market impact would come when normal export flows resume.