OPEC+ raises August oil output by 188,000 bpd as Brent stays below USD 72
Seven OPEC+ producers agreed to raise August oil output by 188,000 barrels a day. The move comes as prices ease after the Iran truce, though Hormuz shipping remains fragile.
Seven countries in the OPEC+ alliance have decided to raise oil output by a combined 188,000 barrels per day in August, the group said on Sunday. The increase, agreed for a fifth consecutive month, will bring more oil into the market as crude prices remain close to levels seen before the US and Israel's war with Iran.
Brent crude, the international benchmark, was trading below USD 72 a barrel shortly after commodities trading opened on Sunday night. Prices have continued to fall as Iran and the US work towards a final peace agreement after an interim deal eased disruptions in the Strait of Hormuz, although ship traffic through the waterway remains below pre-war levels and tensions continue.
The countries involved in Sunday’s decision are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman. In a statement, the oil producers said, "The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach."
In the last month, market optimism pushed crude prices lower before and after the US and Iran reached an interim deal to end their fighting. Under a broader memorandum of understanding, Iran agreed to allow ships to pass unimpeded through the Strait of Hormuz, while the US agreed to end its blockade of Iran’s ports. More commercial vessels have since moved through the strait, which before the war carried roughly a fifth of the world’s oil. But traffic remains below pre-war levels, and Iran’s joint military command warned as recently as Thursday that all oil tankers using the strait must follow its approved routes or face a "forceful response".
The war triggered an energy crisis in much of the world. With most shipping blocked in the Strait of Hormuz, the limited output increases pledged by OPEC+ in recent months could not offset the hit to global oil supplies. Early in the war, many major oil producers in the Middle East had to cut production because their crude had nowhere to go. S&P Global Energy said in a recent estimate that it did not expect Gulf oil production to recover fully until at least the first quarter of 2027, while energy experts have warned that fuel prices and the cost of consumer goods were likely to remain high long after the conflict ends.
Overall, OPEC+ has moved ahead with another modest production increase as oil prices soften, even as shipping through the Strait of Hormuz remains below earlier levels and the wider impact of the war on global energy markets continues.
With PTI Inputs
Seven countries in the OPEC+ alliance have decided to raise oil output by a combined 188,000 barrels per day in August, the group said on Sunday. The increase, agreed for a fifth consecutive month, will bring more oil into the market as crude prices remain close to levels seen before the US and Israel's war with Iran.
Brent crude, the international benchmark, was trading below USD 72 a barrel shortly after commodities trading opened on Sunday night. Prices have continued to fall as Iran and the US work towards a final peace agreement after an interim deal eased disruptions in the Strait of Hormuz, although ship traffic through the waterway remains below pre-war levels and tensions continue.
The countries involved in Sunday’s decision are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman. In a statement, the oil producers said, "The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach."
In the last month, market optimism pushed crude prices lower before and after the US and Iran reached an interim deal to end their fighting. Under a broader memorandum of understanding, Iran agreed to allow ships to pass unimpeded through the Strait of Hormuz, while the US agreed to end its blockade of Iran’s ports. More commercial vessels have since moved through the strait, which before the war carried roughly a fifth of the world’s oil. But traffic remains below pre-war levels, and Iran’s joint military command warned as recently as Thursday that all oil tankers using the strait must follow its approved routes or face a "forceful response".
The war triggered an energy crisis in much of the world. With most shipping blocked in the Strait of Hormuz, the limited output increases pledged by OPEC+ in recent months could not offset the hit to global oil supplies. Early in the war, many major oil producers in the Middle East had to cut production because their crude had nowhere to go. S&P Global Energy said in a recent estimate that it did not expect Gulf oil production to recover fully until at least the first quarter of 2027, while energy experts have warned that fuel prices and the cost of consumer goods were likely to remain high long after the conflict ends.
Overall, OPEC+ has moved ahead with another modest production increase as oil prices soften, even as shipping through the Strait of Hormuz remains below earlier levels and the wider impact of the war on global energy markets continues.
With PTI Inputs
