OPEC+ is expected to formally agree to raise its oil output quotas by 188,000 barrels per day from August, following similar increases in June and July. This decision comes as the group aims to boost global supply in response to falling oil prices, which have been influenced by a gradual reopening of the Strait of Hormuz for oil exports.
Despite the planned increases, actual production has been hindered by the ongoing U.S.-Israeli conflict with Iran, which has disrupted tanker passage from key OPEC+ members like Saudi Arabia and Iraq.
In May, OPEC+ output dropped to 33.13 million barrels per day, significantly down from 42.77 million barrels per day in February, but has shown signs of recovery in June due to U.S. support for oil exports from the UAE and other nations.
Oil prices have stabilized around $72 per barrel, down from over $120 earlier this year, as lower Chinese imports and increased exports from non-Middle Eastern producers have also contributed to the market dynamics. Additionally, the exit of the UAE from OPEC+ and Iraq's push for higher quotas present further challenges for the group.
If the current pace of output increases continues, OPEC+ could fully unwind its previous supply cuts by the end of September