OPEC+ Hikes Production for Sixth Time

On Sunday, the OPEC+ cartel raised its oil production ceiling for the sixth consecutive time. Following an online meeting, seven key member countries decided that, starting in September, the permitted production level will increase by 188,000 barrels per day.

However, analysts point out that a higher production limit does not automatically mean greater oil supplies to the global market. This is because major producers, including Saudi Arabia, have not even met their previously allocated quotas in recent months.

The main reason is the partial blockade of the strategic Strait of Hormuz, through which a significant portion of Saudi oil is transported. The price of Brent crude has risen by approximately 26% since the first US and Israeli attacks on Iran in late February and is currently hovering around $88 per barrel. Iran responded to the attacks by blocking this vital maritime route.

The core of the OPEC+ group consists of Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman. They will discuss future production policy on 6 September.

(dpa, bak)