Seven OPEC+ allies to raise output by 188,000 bpd in August

2026-07-05

OPEC+ allies agreed to continue raising output in August. The monthly meeting marked the fifth straight month of such a decision. It was their first talks since the United States and Iran agreed on a memorandum toward ending hostilities, and oil prices have fallen back to levels seen before the military conflict.

Output increase unchanged from July

Seven allied countries including Saudi Arabia, Iraq and Russia held online talks and decided to lift August production quotas by 188,000 barrels per day. The size of the increase was left unchanged from July. If the current pace continues, the seven countries' voluntary production cuts are expected to end as early as September.

Iraq seeks room to raise output

The United States and Iran signed a memorandum in mid-June on ending hostilities, including reopening the Strait of Hormuz. Expectations for a recovery in supply strengthened, and Brent crude futures at one point fell to around $70 a barrel last week, slipping below the level seen at the end of February. Saudi Arabia and Russia are seen as cautious about a sharp increase in output that could further weigh on oil prices.

Meanwhile, Iraq is positive about increasing production. Its OPEC production quota is about 4.4 million barrels per day, short of its estimated actual output capacity of 4.9 million barrels. The country is thought to want to make up for oil revenue lost because of blockades and cover the cost of restoring energy facilities damaged by attacks from the Iranian side.

In late June, Iraq was reported to be considering leaving OPEC. The government denied the report, but said it aims to raise production capacity to 7 million barrels within three years. In the market, many believe Iraq is trying to win approval for higher output by hinting at departure as an option. The next meeting is set for Aug. 2.

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