OPEC+ Boosts Oil Quotas for Sixth Consecutive Month
OPEC+ has decided to raise oil output quotas for the sixth month in a row, a move analysts had expected. However, several producers are struggling to meet their targets because of the situation in the Strait of Hormuz and attacks on Russia's oil infrastructure.
OPEC+ has again increased its oil production quotas, marking the sixth consecutive month of such decisions. The latest move applies to seven member countries: Algeria, Iraq, Kazakhstan, Russia, Kuwait, Oman and Saudi Arabia. Analysts had anticipated this, as the size of the increase is similar to previous months.
Despite the higher quotas, many countries are finding it difficult to actually boost output. Persian Gulf states, in particular, face serious obstacles because the Strait of Hormuz, a key route for energy trade, has been almost completely closed due to the conflict involving Iran. Although ship traffic temporarily increased after the US–Iran memorandum of understanding was signed in June, export capacity remains limited.
Analysts point out that several members cannot even reach their existing production targets, so it is unclear when the group will be able to raise actual output. Some countries, such as Iraq, have expressed a desire to significantly increase production, while others are hampered by external factors.
Russia, for example, has seen its output fall to roughly 9 million barrels per day after repeated Ukrainian drone attacks on its oil infrastructure, well below its target of 9.8 million barrels per day.
The current increases mark a reversal of the group’s earlier approach. Between late 2022 and 2023, OPEC+ was concerned about falling oil prices and agreed to cut output in three separate rounds, reducing production by almost 6 million barrels per day in total. Since last year, however, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, Oman and the United Arab Emirates have changed their strategy and have been gradually raising output.
