OPEC+ reportedly expected to approve another oil output increase for August

OPEC+ is expected to approve another increase in oil production targets at its meeting on Sunday, with member countries likely to raise output by 188,000 barrels per day from August, Reuters reported, citing sources familiar with the discussions.

The planned increase would follow similar quota hikes implemented for June and July as the producer group continues gradually restoring supply after months of disruptions linked to the conflict between Iran, Israel, and the United States.

According to the sources, ministers have reached broad agreement on the proposed increase ahead of the online meeting, although a final decision is still pending.

The seven core members of OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, have already agreed to increase production quotas by nearly 800,000 barrels per day between April and July.

Actual production, however, has lagged behind those targets. Exports were severely disrupted after the Strait of Hormuz was closed during the conflict, limiting shipments from key producers including Saudi Arabia, Iraq, Kuwait, and the United Arab Emirates.

Production has begun recovering following the reopening of the vital shipping route and the ceasefire agreement reached last month. Even so, output remains below pre-conflict levels, according to OPEC data.

Oil prices have also retreated sharply from their wartime highs as concerns over supply disruptions eased. Additional pressure has come from weaker Chinese crude imports, stronger production from non-Middle Eastern suppliers, and coordinated releases from strategic petroleum reserves by members of the International Energy Agency.
Brent crude settled near $72 a barrel on Friday, down significantly from peaks above $120 reached during the height of the conflict. Investors will now watch Sunday’s OPEC+ decision for further signals on the group’s strategy as it balances recovering supply with slowing demand growth.