OPEC+ has revealed plans to increase oil production by 188,000 barrels per day starting in August, amid signs of recovery in the energy markets following the US-Israel war on Iran. This decision was announced on July 6, 2026, after a virtual meeting among member countries.
Details of the Production Increase
The production boost marks the fifth consecutive increase by OPEC+ in as many months. The countries involved include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. This increase comes after production cuts were implemented earlier in 2023 due to economic instability and a series of bank collapses.
OPEC+ emphasized their commitment to monitor market conditions closely, stating, "The countries will continue to closely monitor and assess market conditions," and reaffirmed the need for flexibility in their production adjustments.
Market Reactions and Future Outlook
Brent crude prices, which peaked at over $126 per barrel in April, have recently fallen back to pre-war levels, currently trading at around $72. This decline is attributed to hopes for a resolution in the Iran conflict and an increase in shipping traffic through the Strait of Hormuz.
