OPEC+ to boost oil output amid Strait of Hormuz closure and Middle East war

business

Major OPEC+ members, comprising OPEC and allied producers including Russia, have agreed to a modest increase in oil output quotas for July. The planned hike is estimated between 188,000 and 200,000 barrels per day.

This follows a period from April to June where seven members of the group increased output quotas by nearly 600,000 barrels per day.

The move is widely regarded as symbolic because the war in the Middle East has choked off the Strait of Hormuz. This critical waterway is the route for a fifth of the world's oil.

Because of the effective shutdown of the Strait, exports from the Persian Gulf are blocked and vast amounts of oil remain stranded. This situation makes it nearly impossible to ship the increased production, preventing most members from implementing the new quotas.

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