OPEC+ Boosts Oil Production by 188,000 Barrels per Day from September

OPEC+, the expanded Organisation of the Petroleum Exporting Countries, has agreed to increase oil production by 188,000 barrels per day from September. The decision was made in an online meeting on Sunday and involves key members Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

According to analysts at Rystad Energy, the increase is widely expected as OPEC+ has finished unwinding its voluntary cuts. However, the real market impact will come when normal export flows resume, which remains constrained due to the Strait of Hormuz being orchestrated by Iran during the war in the Middle East.

Some OPEC+ members face difficulties in increasing production, including Russia, which is affected by repeated Ukrainian drone attacks on its oil infrastructure. Iraq has expressed a desire to significantly boost production, but it's unclear when the group will be able to increase oil volumes.