OPEC+ has agreed to increase its collective oil production target by 188,000 barrels per day (bpd) from August, continuing the gradual rollback of its 2023 voluntary production cuts. While similar increases were approved for June and July, actual output has remained below target due to disruptions caused by the Iran conflict and the temporary closure of the Strait of Hormuz.
Although production has begun to recover as exports resume, oil prices have fallen back to pre-war levels amid weak Chinese demand, rising supplies from non-Middle East producers, and coordinated strategic stock releases.
OPEC+ also faces internal challenges, including the UAE's departure from the alliance and Iraq's push for higher production quotas.
If another similar increase is approved in September, the group will have fully reversed its 2023 production cuts.