OPEC+ Raises Output Quotas Amid Hormuz Disruptions

The OPEC+ group has agreed to increase September oil production quotas by 188,000 barrels per day (bpd), despite ongoing disruptions in the Strait of Hormuz and Bab el-Mandeb.

The decision comes after a meeting on Sunday, where seven key members, Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, agreed to raise output. This move completes the phased unwinding of cuts totaling 1.65 million barrels per day introduced in 2023.

However, with shipping bottlenecks and voluntary production gaps, it's unclear how many of these additional barrels will actually reach markets. The Reuters poll data shows that OPEC+ members produced 20.276 million barrels per day in June, which was 6.246 million below the target.