OPEC Output Recovers, But Iran's Production Still Mired in Conflict-Related Losses

OPEC oil production has seen a significant recovery in July, but one major player is still lagging behind. According to a Reuters survey, OPEC's 11 remaining members pumped out 19.85 million barrels per day in July, up from 18.68 million bpd in June. This marks a meaningful rebound from May's low of 17.8 million bpd, which was the group's weakest point since at least 2000.

The increase is largely due to Gulf producers resuming supplies disrupted by the ongoing conflict and the blockade of the Strait of Hormuz earlier this year. Iraq led the way, logging the largest single-country production increase within OPEC in July. Kuwait and Libya also contributed significantly to the group's overall output gains. However, Saudi Arabia saw a slight dip in production compared to June.

OPEC+ had approved a quota increase for seven core member countries, but logistical challenges and ongoing geopolitical tensions have kept actual supply below what would be expected. Meanwhile, Iran's oil exports remain around 25% below pre-war levels due to US-imposed restrictions on port activities connected to Iranian oil shipments.