Seven OPEC+ member countries—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—have announced plans to increase oil production by 188,000 barrels per day beginning in August. This marks the fifth consecutive monthly production increase by these members, continuing a gradual reversal of the output cuts implemented in 2023.

OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allied producers such as Russia, Bahrain, and Oman, had previously cut output in April and November 2023 amid a series of bank collapses that caused a major sell-off in oil and other commodities.

The decision to boost production comes as energy markets show tentative signs of recovery amid the fallout from the US-Israel conflict with Iran. Brent crude oil prices, which briefly surpassed $126 a barrel in April, have recently fallen back to pre-war levels amid hopes for a permanent resolution to the Iran conflict and a return to normal shipping through the Strait of Hormuz.

The announcement followed a virtual meeting where officials reviewed global market conditions and outlooks.

Sources