OPEC+ Oil Hike May Be Irrelevant Amid Iran Conflict Disruptions

OPEC+ members agreed to increase oil production by 188,000 barrels per day in September, completing the rollback of a 1.65 million bpd supply cut originally agreed in 2023.

However, with the Strait of Hormuz largely closed and threats to the Bab el-Mandeb waterway unresolved, there is little chance of this increased production reaching the market immediately.

Russia, a key non-OPEC member, has also seen its own production below target, pumping 8.928 million bpd in June, almost 1 million bpd below its quota.