OPEC+ Boosts Oil Output Targets Amid Hormuz Exports Recovery

OPEC+ agreed to increase oil production targets by 188,000 barrels per day from August, adding to global supply at a time when oil prices are falling due to the gradual reopening of the Strait of Hormuz for oil exports.

The seven core members of OPEC+, which groups OPEC and allied producers including Russia, have hiked their output quotas from April through July by almost 800,000 bpd. However, the increase has remained largely on paper due to the U.S.-Israeli war on Iran, which closed the Strait of Hormuz to tanker traffic for some of the most important OPEC+ members.

The group's output fell to 33.13 million bpd in May from 42.77 million bpd in February, but began to recover in June thanks to U.S. efforts to help the UAE and other OPEC+ nations export more oil.