OPEC+ Raises Output Targets for Fourth Month Running

The OPEC+ group agreed on Sunday to increase oil production targets for the fourth consecutive month, even as several members continue to face export problems stemming from the conflict between the United States and Iran.

Seven members of the group, including Saudi Arabia, Russia, Iraq and Kazakhstan, agreed to raise production targets by 188,000 barrels a day from July, matching the increase approved for June. Monthly increases in April and May were slightly higher.

The decision comes against a backdrop of significant market disruption. The war between the US and Iran has interrupted traffic through the Strait of Hormuz, one of the most important routes for global oil trade, leaving key Gulf producers unable to deliver planned volumes to customers since the end of February.

Despite gradual quota increases, actual OPEC+ production has fallen. According to the group's data, output averaged 33.19 million barrels per day in April, down from 42.77 million barrels in February.

The situation has been further complicated by the United Arab Emirates' withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) after almost six decades of membership.

(reuters, max)