OPEC+ Approves 188,000 Bpd Oil Output Hike

OPEC+ agreed on 5 July 2026 to raise its collective oil production ceiling by 188,000 barrels per day for August. The decision was taken by seven core members of the alliance during an online ministerial meeting.

OPEC+ and its Core Members

OPEC+ is a grouping of the Organization of the Petroleum Exporting Countries and allied producers that coordinates oil output policy. The seven core members involved in the August decision were Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

Phased Rollback of Supply Cuts

The August increase forms part of a phased rollback of a 1.65 million barrels per day supply cut agreed in 2023. After the August hike, about 379,000 barrels per day of the original 2023 cuts will still remain to be restored to the market.

Production Targets and Market Context

The alliance has announced five consecutive monthly supply increases. Ministers are scheduled to meet again on 2 August 2026 to decide production targets for September.

UAE Exit and Strait of Hormuz

The United Arab Emirates exited OPEC+ on 1 May 2026 and aligned its domestic capacity with its own output policy. The Strait of Hormuz is a narrow sea passage between the Persian Gulf and the Gulf of Oman, and it is used for a large share of global seaborne oil trade.

Important Facts for Exams

• OPEC was founded in 1960 in Baghdad by five countries, including Saudi Arabia and Venezuela.
• OPEC+ includes OPEC members and non-OPEC producers such as Russia.
• Barrels per day is a standard unit used to measure crude oil production and supply.
• The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea route.

Recent Oil Price Reference

Crude oil traded near 72 US dollars per barrel on 3 July 2026. The next OPEC+ ministerial review is fixed for 2 August 2026.