OPEC+ Boosts August Oil Output by 188,000 Barrels Per Day

 

 

The oil alliance approves a fifth consecutive monthly supply increase as crude prices stabilise at pre-conflict levels near seventy-two dollars.

 

 

OPEC+ has agreed to raise its collective oil production ceiling by 188,000 barrels per day (bpd) for August, marking the fifth consecutive monthly supply increase by the alliance in an effort to stabilise global energy markets.

 

The decision was finalised during an online ministerial meeting on Sunday, 5 July 2026, by the seven core alliance members: Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

 

In an official statement, the group reaffirmed its commitment to market stability, adding that the participating nations would maintain flexibility to adjust output based on shifting macroeconomic conditions. The ministers are scheduled to reconvene on 2 August to determine production targets for September.

 

The August hike represents a continued effort by the seven producers to phase out a 1.65 million bpd supply cut originally agreed upon in 2023. At that time, the United Arab Emirates (UAE) was still a member of the alliance.

 

However, the UAE formally exited OPEC+ on 1 May to align its expanding domestic capacity more closely with its output, freeing itself from the group's stringent production constraints.

 

 

 

 

 

According to Reuters calculations, following the implementation of the August hike, the core members will have roughly 379,000 bpd of the original 2023 cuts left to restore to the market—a volume that could be entirely unwound if a similar increase is approved for September.

 

Despite the cartel's policy adjustments, much of the planned output increases have remained largely on paper due to severe geopolitical disruptions.

 

Ongoing military conflict involving the US, Israel, and Iran had previously closed the strategic Strait of Hormuz to shipping traffic, heavily restricting exports from key OPEC+ producers such as Saudi Arabia, Kuwait, and Iraq.

 

OPEC data reveals that alliance output plummeted from 42.77 million bpd in February to 33.13 million bpd in May. While production began a modest recovery in June—bolstered by US-led initiatives to assist the UAE and other regional nations in bypassing shipping bottlenecks—overall volumes remain below pre-conflict levels.

 

Nonetheless, maritime traffic through the Strait of Hormuz has recently begun a gradual, cautious resumption.
 

 

 

Remarkably, despite these persistent supply disruptions, international oil benchmarks have retreated significantly from their conflict-driven peaks.

 

Global benchmark Brent crude traded near $72 per barrel on Friday, down sharply from previous highs exceeding $120 per barrel. Prices have now retraced to levels last seen prior to the outbreak of hostilities on 28 February.

 

Market analysts attribute this pricing resilience to a combination of cooling demand via lower Chinese crude imports, rising production from non-Middle Eastern producers, and a historic, coordinated release of global strategic petroleum reserves orchestrated by the International Energy Agency (IEA).

 

As OPEC+ looks ahead to its August review, the alliance must navigate shifting market fundamentals alongside internal friction. Beyond managing the fallout of the UAE's high-profile departure, the group faces fresh domestic challenges as Iraq signals its intention to negotiate higher individual production quotas.