OPEC+ is set to agree on another increase in output targets from August, sources with knowledge of the matter said, adding to global supply amid falling oil prices due to a gradual reopening of the Strait of Hormuz for oil exports.
Production Begins to Recover
The oil-producing group has agreed in principle to increase quotas by 188,000 barrels per day from August, on top of similar increases for June and July, two sources with knowledge of OPEC+ thinking said ahead of the group’s online meeting later on Sunday.
Seven core members of OPEC+, which groups OPEC and allied producers including Russia, have increased their output quotas from April through July by almost 800,000 barrels per day.
OPEC+ output fell to 33.13 million bpd in May, according to OPEC data, from 42.77 million bpd in February. It began to recover in June thanks to U.S. efforts to help the UAE and other OPEC+ nations to export more oil, but is still below pre-war levels.
Despite persisting supply disruptions, oil prices have returned to pre-war levels, pressured by lower Chinese imports, higher exports from non-Middle East producers, and a record global strategic stock release coordinated by the International Energy Agency.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
