OPEC+ Quota Hike Irrelevant Amid Ongoing Strait of Hormuz Disruptions

OPEC+ members agreed to increase crude oil production quotas for September by 188,000 barrels per day (bpd), completing a phased rollback of a 1.65 million bpd supply cut.

However, the decision may be largely irrelevant due to ongoing disruptions in the Strait of Hormuz and the threat to the nearby Bab el-Mandeb waterway.

The eight members of OPEC with quotas pumped 20.276 million bpd in June, which was 6.246 million bpd below their agreed target, according to a Reuters survey.