OPEC+ Hikes Production Quota Amid Ongoing Middle East Tensions

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

The higher production quotas may not immediately impact global oil supplies due to the ongoing Middle East conflict. The Strait of Hormuz remains closed, disrupting oil and gas exports, which account for 20% of the world's total.

Russia is facing challenges in its oil industry after Ukrainian drone attacks on energy infrastructure. Its current production stands at around 9 million barrels per day, below the OPEC+ target of about 9.8 million barrels per day.