OPEC+ to Boost Oil Output Amid Shifting Market Dynamics

OPEC+ is likely to increase its output targets from August, adding about 188,000 barrels per day. This decision aligns with the phased rollback of a 1.65 million bpd supply cut. The reopening of the Strait of Hormuz and other global factors are impacting oil prices and production decisions.

OPEC+ oil-producing countries are expected to agree on further increasing their output targets from August, according to inside sources. The decision, which adds approximately 188,000 barrels per day, comes amidst falling prices as the Strait of Hormuz gradually reopens.

In recent months, seven core members of OPEC+, comprising OPEC and its allies including Russia, have already boosted their quotas by nearly 800,000 barrels per day between April and July. However, the Iran conflict has significantly affected production levels among key members, leading OPEC+'s output to drop to 33.13 million bpd in May, down from 42.77 million bpd in February.

As the group looks to phase out the remainder of a 1.65 million bpd supply cut by September, external pressures such as weaker Chinese imports and an increased supply from non-Middle Eastern producers have influenced current market dynamics. Meanwhile, Iraq's potential exit from OPEC over quota disagreements remains a point of contention.