OPEC+ Increases Oil Production Amid Ongoing Middle East Conflict

The OPEC+ alliance has approved another increase in crude oil production from September, signaling the continued rollback of supply cuts introduced in 2023.

The decision increases the group's crude production quota by around 188,000 barrels per day, with seven key OPEC+ producers - Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman - approving the move as part of the bloc's phased restoration of production following earlier output reductions.

However, global supplies may remain constrained due to ongoing conflict in the Middle East disrupting oil and gas exports through the Strait of Hormuz, a strategic maritime corridor that accounts for nearly 20% of the world's oil and gas exports.

Russia's current production stands at around 9 million barrels per day, below its OPEC+ production target of approximately 9.8 million barrels per day, due to pressure on its energy sector following Ukrainian drone attacks targeting oil infrastructure.