OPEC+ agrees to raise oil output by 188,000 bpd in August 2026
Seven OPEC+ members – Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman – approved a modest increase of 188,000 barrels per day to the group's collective oil‑production quota, effective from August 2026. The decision was taken at a virtual meeting on 5 July and marks the fifth consecutive month that the alliance has lifted output after similar hikes in June and July.
The move comes as the Strait of Hormuz, which had been partially closed during the US–Israel‑Iran clash, is seeing a partial recovery of tanker traffic. Although transits remain well below pre‑war levels, the easing of the bottleneck, together with a rebound in Saudi and Russian exports, has helped bring Brent crude back to around $72 a barrel – close to prices seen before the conflict. OPEC+ reiterated that it will continue to monitor market conditions and will meet again on 2 August to reassess the situation. The increase is part of a gradual unwind of the 1.65 million‑bpd cut introduced in 2023 and follows record Russian shipments and a rise in Saudi sales that have boosted global supply.
Analysts note that while the production hike is largely a paper adjustment until the Hormuz flow normalises, it signals a shift from a supply crunch to a potential oversupply, shaping oil‑price expectations for the coming months.