Opec+: new oil production increase after Hormuz shutdown
The organisation decided on an increase of about 188,000 barrels per day since July. This is the fourth increase in four months since the outbreak of the war in the Gulf
TheOpec+ approved the fourth consecutive increase in oil production targets, despite the fact that the war between the US and Iran continues to prevent several members of the alliance from actually increasing extraction. With the energy crisis triggered by the conflict, important Opec+ members, including Saudi Arabia, have been unable to fully meet customer demand since the end of February. The crisis deepened further when the United Arab Emirates left the organisation after almost 60 years.
Fourth increase in four months
Seven key members of Opec+, which brings together Opec countries and other allied producers including Russia, increased their production quotas from April to June by almost 600,000 barrels per day. In reality, however, the group's overall production plummeted due to export cuts by Gulf countries, averaging 33.19 million barrels per day in April compared to 42.77 million in February.
The numbers of the increase
Now the countries involved will increase their production targets by about 188,000 barrels per day starting in July. This is the same increase as decided for June, reduced from the monthly increases of 206,000 barrels per day planned for April and May to account for the exit of the United Arab Emirates. The seven Opec+ members meeting today who confirmed this decision are Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia and Oman.
