Oil & Gas

OPEC+ is expected to approve another production quota increase for August, with Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman likely to add 188,000 barrels per day, according to Reuters. The move follows a similar increase for July as the group continues to gradually restore output after maintaining production cuts since 2023.

Previous output hikes had limited impact because the conflict involving Iran, Israel, and the United States disrupted oil exports through the Strait of Hormuz, forcing Gulf producers to rely on stored crude. Meanwhile, the United Arab Emirates, after leaving OPEC, has boosted exports to record levels, with June shipments reaching between 3.7 million and 4 million barrels per day, according to Kpler and Vortexa.

Analysts say the export surge reflects both the reopening of the Strait of Hormuz and the release of oil from storage built up during the conflict. As those inventories decline, export volumes may ease until additional production comes online.

The developments have revived questions about OPEC+'s influence, although key members such as Kazakhstan and Iraq remain committed to the alliance. At the same time, record U.S. oil production and improving Middle East supply have pushed crude prices back to pre-conflict levels, increasing pressure on producers to prevent further price declines.