Vienna: OPEC+ has agreed to increase its oil production targets by 188,000 barrels per day (bpd) from August, continuing its phased plan to restore output that was voluntarily reduced under the group’s 2023 agreement.
The decision was announced after the group’s online meeting on Sunday and follows similar production increases implemented for June and July.
The additional supply comes as oil prices have moderated in recent weeks amid improving export flows through the Strait of Hormuz and changing global supply and demand conditions.
Market Conditions Influence Decision
Brent crude was trading near $72 per barrel on Friday, lower than the levels recorded during the recent period of heightened geopolitical tensions.
Oil prices have been influenced by lower crude imports from China, higher exports from producers outside the Middle East, and the record release of strategic oil reserves coordinated by the International Energy Agency (IEA), which has added to global supply.
Market participants are also monitoring shipping activity through the Strait of Hormuz as export operations continue to normalize.
Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman adjust production and reaffirm commitment to market stability
Read Press Release▶️https://t.co/dyMd6A6Fpj
— OPEC (@OPECSecretariat) July 5, 2026
Production Rollback Nearing Completion
The latest increase forms part of the gradual rollback of the 1.65 million bpd voluntary production cut agreed by participating OPEC+ producers in 2023.
The countries involved in the monthly production adjustments are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. Although OPEC+ comprises 21 member countries, these producers are currently responsible for implementing the phased output increases.
The group is also addressing internal developments, including Iraq’s request for higher production quotas and the United Arab Emirates’ departure from the alliance in April after deciding to pursue production levels aligned with its own capacity.
With the August increase approved, participating producers will have restored most of the 2023 production cuts. If a similar increase is agreed upon at the next OPEC+ meeting on August 2, the rollback is expected to be completed in September.
