OPEC+ Boosts Crude Production Amid Ongoing Middle East Tensions

OPEC+ has approved an increase in its crude production quota by around 188,000 barrels per day from September. This decision was made by seven key OPEC+ producers, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

The move comes amidst Middle East tensions and supply uncertainty. The Strait of Hormuz, through which 20% of the world's oil and gas exports transit, remains choked due to ongoing conflict.

Russia is facing pressure on its oil industry after repeated Ukrainian drone attacks striking deep into Russian territory to hit energy infrastructure. Russia's production is currently around 9 million barrels per day, below its OPEC+ target of about 9.8 million barrels per day.

The UAE's exit from the OPEC+ group in May has added another layer of uncertainty. Analysts expect the group to take a more cautious approach after the September increase, with Rystad Energy predicting that OPEC+ will hold production levels steady during the fourth quarter before discussing quotas for 2027.