OPEC+ Approves Fourth Oil Output Increase since Hormuz Closure

The OPEC+ alliance approved a fourth consecutive increase in oil production targets since the closure of the Strait of Hormuz, underscoring the group's efforts to stabilize global energy markets despite ongoing supply disruptions caused by the conflict involving Iran.

In a statement issued on Sunday, the alliance agreed to raise collective production targets by 188,000 barrels per day (bpd) beginning in July, extending a gradual supply-restoration strategy that has been underway since April.

The decision comes even as several key producers continue to face difficulties increasing actual exports because of the disruption of crude flows through the Strait of Hormuz, one of the world's most critical energy chokepoints.

The conflict has severely disrupted oil shipments from the Gulf region, triggering one of the most significant supply crises in modern oil-market history.

Several major OPEC+ producers, including Saudi Arabia, have reportedly been unable to fully meet customer demand since late February as logistical constraints and export bottlenecks continue to affect regional energy flows.

The challenges facing the producer alliance have been compounded by the departure of the United Arab Emirates from OPEC after nearly six decades of membership, altering the group's production structure and decision-making dynamics.

Seven key OPEC+ members had already increased their production quotas by nearly 600,000 bpd between April and June as part of a phased effort to restore supply to global markets.

Under Sunday's agreement, the participating countries approved an additional 188,000 bpd increase for July, matching the adjustment previously implemented for June.

The July increase is slightly lower than the monthly additions of 206,000 bpd approved for April and May, reflecting quota recalibrations following the UAE's withdrawal from the producer group.

Despite the series of quota increases, actual oil output across the alliance has moved in the opposite direction.

According to OPEC data, production averaged approximately 33.19 million bpd in April, down sharply from 42.77 million bpd in February, largely due to reduced exports from Gulf producers affected by the Hormuz disruption.

The gap between official production targets and physical output highlights the continuing challenges facing the alliance as it attempts to balance market stability with operational realities.

The countries participating in Sunday's meeting included Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman.

In recent years, these producers, along with the UAE prior to its departure, have effectively formed the core decision-making group responsible for shaping OPEC+ production policy.