OPEC+ to Raise Output Despite Hormuz Turmoil

The OPEC+ group is set to approve another increase in oil production targets on Sunday, according to sources familiar with the negotiations. It would be the fourth rise in production quotas in as many months, even as several members continue to face export problems stemming from the conflict between the United States and Iran.

The war has disrupted oil shipments through the Strait of Hormuz, one of the world's most important energy routes, limiting the ability of several OPEC+ members, including Saudi Arabia, to supply customers with planned volumes. The situation has been further complicated by the withdrawal of the United Arab Emirates (UAE) from the Organization of the Petroleum Exporting Countries (OPEC).

The seven main OPEC+ members increased their production quotas by almost 600,000 barrels per day between April and June. Real output has nonetheless fallen as exports from Gulf states have been severely curtailed, according to OPEC data.

The group could increase its production target by around 188,000 barrels a day from July, the same increment as in June. The originally planned higher growth rate was scaled back following the UAE's departure from the organization.

The increase will be negotiated by Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman. A broader OPEC+ ministerial meeting is also scheduled for Sunday but is not expected to result in any major policy changes.

(reuters, max)