The Organization of the Petroleum Exporting Countries and allies (OPEC+) has agreed to increase its oil production targets for a fourth consecutive month, pressing ahead with plans to restore output despite an ongoing supply crisis that continues to disrupt exports from several key producers.
The decision, announced on Sunday, comes as the conflict between the United States and Iran continues to restrict oil flows through the Strait of Hormuz, a critical shipping route for global energy markets.
The disruption has prevented several Gulf producers from fully supplying customers since late February, creating significant challenges for the producer group.
The situation has been further complicated by the departure of the United Arab Emirates (UAE) from OPEC+ after nearly six decades of membership.
Seven core members of OPEC+, which include OPEC nations and allies such as Russia, have already increased their production quotas by almost 600,000 barrels per day between April and June.
However, actual production has moved sharply lower as export constraints have outweighed quota increases.
According to OPEC data, the group's output averaged 33.19 million barrels per day in April, down from 42.77 million barrels per day in February.
At Sunday's meeting, the seven participating members agreed to raise production targets by a further 188,000 barrels per day from July.
The increase matches June's adjustment, which had already been scaled back from the 206,000 barrels per day increases implemented in April and May to account for the UAE's exit from the group.
The announcement came after oil prices retreated on Friday. Brent crude settled at US$93.09 a barrel, down $1.94 or 2% on the session, while U.S. West Texas Intermediate crude declined $2.50 or 2.7% to finish at $90.54 per barrel.
Despite the recent pullback, oil prices remain substantially above levels seen before the outbreak of hostilities. Brent crude had traded near $72 a barrel prior to the conflict.
The latest quota increase forms part of OPEC+'s broader plan to gradually unwind a 1.65 million barrel-per-day voluntary production cut first agreed in 2023.
The seven countries participating in Sunday's quota decision were Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia and Oman.
In recent years, these nations, along with the UAE before its exit, have largely driven the group's production policy decisions.
In a separate meeting involving all 21 OPEC+ member countries, ministers opted to leave the broader production framework unchanged through the end of 2026.
The group is also continuing a comprehensive review of members' oil production capacities, which will help determine the baseline production levels used to calculate quotas from 2027 onwards.
In its statement, OPEC+ reaffirmed the importance of completing the assessment process, signalling that future production targets will continue to be guided by updated capacity evaluations as the organisation seeks to balance supply, demand and market stability in an increasingly uncertain global energy environment.
