OPEC+ Hikes August Output by 188,000 bpd Despite Oil Price Slump
OPEC+ agreed to increase August oil output by 188,000 barrels per day, the fifth consecutive monthly hike, despite a sharp drop in oil prices. The group retains flexibility to adjust production based on market conditions.
OPEC+ has approved a 188,000 barrel-per-day increase in August oil output, marking the fifth straight month of supply hikes. The decision comes even as crude prices have slumped to near pre-war levels, with WTI down approximately 22% and Brent down about 20% over the past month.
The group stated it will continue monitoring market conditions and retains the flexibility to increase, pause, or reverse output adjustments as needed. Recent easing of supply concerns has been driven by recovering flows through the Strait of Hormuz, although shipping has not fully returned to pre-war norms.
Analysts note that the market has not fully normalized, as insurance costs remain elevated and some energy infrastructure is still under repair. Additionally, a new security risk emerged after a cargo ship was attacked off Yemen, underscoring ongoing threats to regional shipping routes.
Source: First Squawk