OPEC+ oil output increase set for August as seven countries add 188,000 barrels per day

OPEC+ said seven member countries plan a modest output rise in August. The move follows a sharp slide in oil prices after the US-Iran fighting eased. The group said the increase totals 188,000 barrels per day. It was the fifth straight month the alliance agreed to add supply.

Representative image

Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman joined the decision. OPEC+ said the group will keep reviewing supply and demand signals. The alliance linked the plan to a desire to avoid sudden shifts. Oil markets have stayed sensitive to shipping risks and diplomacy.

OPEC+ oil production increase and market stability

The producers said they will keep tracking market conditions and risks. "The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach,\" the group said in a statement.

Crude prices fell in the past month as traders reacted to improving expectations. Prices dropped before and after the US and Iran reached an interim deal. Under a wider memorandum of understanding, Iran agreed to allow ships through. The US also agreed to end the blockade of Iran’s ports.

OPEC+ oil production increase after Strait of Hormuz tensions

More commercial vessels have since used the Strait of Hormuz. Before the war, it carried about a fifth of the world’s oil. Traffic remains below pre-war levels, and tensions continue. Iran’s joint military command warned on Thursday about tankers. It said ships must use approved routes.

Oil prices kept sliding as US and Iran negotiators worked on a final peace deal. Brent crude traded under USD 72 a barrel after markets opened on Sunday night. That is near the level before late Feburary strikes by the US and Israel. In March, prices had surged to nearly USD 120.

OPEC+ oil production increase amid post-war supply strain

The conflict triggered an energy crisis across many regions. With most shipping blocked in the Strait of Hormuz, earlier OPEC+ increases had limited effect. Those additions could not offset disrupted flows and tight supply. The pressure pushed costs higher for fuel buyers and import-dependent economies.

During the early phase of the war, several major Middle East producers cut output. Many barrels had limited export routes because ships could not move freely. S&P Global Energy estimated Gulf output may not fully recover soon. It said a full rebound may wait until at least first quarter 2027.

Energy experts have repeatedly warned that fuel costs may stay high for longer. Analysts also said consumer goods prices could remain under pressure after the fighting ends. OPEC+ is still adding supply in small steps while monitoring risks. The August increase adds more oil, but uncertainty remains around shipping routes.

With inputs from PTI