La Jornada: OPEC approves + increasing production from August

London. OPEC+ agreed to a new increase in production targets starting in August, the group announced on Sunday, which will increase global supply at a time when oil prices fall due to the gradual reopening of the Strait of Hormuz, a transport route for the hydrocarbon.

The group of producing countries agreed, during an online meeting, to increase quotas by 188 thousand barrels per day starting in August, adding to similar increases for June and July.

The seven main members of OPEC+, which includes allied producers, including Russia, have increased their production quotas between April and July by almost 800 thousand barrels per day; However, the increase has largely remained on paper due to the US-Israel war against Iran, which closed the Strait of Hormuz to oil tanker traffic for some of the most important members of OPEC+, including Saudi Arabia, Kuwait and Iraq.

OPEC+ production fell to 33.13 million barrels per day in May, according to group data, from 42.77 million barrels per day recorded in February.

It began to recover in June thanks to US efforts to help the United Arab Emirates and other OPEC+ countries export more oil, but remains below pre-war levels.

Despite persistent supply disruptions, oil prices have returned to pre-conflict levels, pressured by declining Chinese imports, among other factors.