OPEC+ Cartel Hikes Oil Production Amid Middle East Conflict

The OPEC+ cartel has agreed to increase oil production by 188,000 barrels per day from September, restoring earlier cuts made in 2023. The decision was taken by seven key producers, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

However, the impact on global supplies may be limited due to ongoing Middle East conflicts disrupting oil exports through the Strait of Hormuz, which handles 20% of the world's oil and gas exports. Additionally, producers like Russia are facing challenges in meeting their quotas due to Ukrainian drone attacks on 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 uncertainty to the cartel's decision-making process.