OPEC+ increases oil output by 188,000 barrels per day from August

The Organization of the Petroleum Exporting Countries and its partners (OPEC+) alliance has approved a new increase in crude oil production quotas, which will take effect from August 2026.

The decision was made during an online meeting of cartel ministers.

Which countries are increasing production?

A total of seven major producers within the oil pact will increase their volumes by 188,000 barrels per day. These are:

Saudi Arabia Russia Iraq Kuwait Kazakhstan Algeria Oman

This is the fifth consecutive month that countries have phased out additional voluntary cuts of 1.65 million barrels per day, originally agreed in 2023.

Reasons for the decision and market context

The main driver behind the easing of restrictions is the gradual normalization of shipping in the Middle East. Commercial traffic through the strategic Strait of Hormuz has begun to recover following the signing of an interim agreement between the United States and Iran. Due to the conflict in the region in the first half of the year, a number of Gulf states were forced to limit their actual exports, as their tankers could not pass safely. Currently, Saudi Arabia and Kuwait are already reporting a significant increase in the amount of crude transported.

At the same time, the cartel is also facing internal challenges. The United Arab Emirates (UAE) officially left the alliance in May to produce independently, and Iraq continues to push for a revision and increase of its own individual quota.

Reaction on international exchanges

The news of the additional supply immediately put pressure on international markets, pushing prices down:

The international benchmark Brent variety fell below the limit of $72 per barrel. US Light Crude (WTI) is trading at levels around $68.5 per barrel.

The decline is attributed not only to the OPEC+ decision, but also to lower imports from China and the coordinated release of strategic reserves by the International Energy Agency (IEA). The next meeting of the OPEC+ Monitoring Committee is scheduled for August 2, 2026, when market conditions will be reassessed.