OPEC+ Boosts Output Amid West Asia Tensions

OPEC+, the oil-producing nations alliance, has decided to increase its output by around 188,000 barrels per day, marking the sixth consecutive monthly rise. This decision comes despite ongoing disruptions in the Gulf region and the ongoing war in West Asia, which is putting pressure on OPEC+ unity.

The increase will be led by seven members: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. However, a wider cut of around 2 million barrels per day from 2022 will remain until the end of the year.

Analysts are warning that ongoing disruptions in the Gulf could prevent some planned increases from being fully implemented and may complicate future quota discussions. The war in West Asia has added pressure on OPEC+ unity, with members set to review production levels and capacity assessments for future quotas.

Oil prices have seen their strongest monthly rise since March after renewed US war against Iran raised concerns over supply disruptions, particularly around the Strait of Hormuz, a key global energy route. The increase in oil output is expected to be monitored by OPEC+ before deciding whether to continue raising production levels.