OPEC+ Increases Oil Production Quotas Amid Middle East Calm

On a virtual meeting held on Sunday, OPEC+ decided to raise oil production quotas for seven member countries, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, by 188,000 barrels per day. This adjustment comes as the Middle East stabilizes following recent conflicts.

The output cuts had previously led to a near paralysis in the Strait of Hormuz due to Iranian actions during the war, affecting oil exports significantly. The new quotas, effective from August 2026, reflect a combined increase for Saudi Arabia, Iraq, and Kuwait, which had previously seen a drop of six million barrels per day.

Analysts, including Giovanni Staunovo from UBS and Ol Hansen from Saxo Bank, noted that while there is an anticipated gradual return to normal oil supply, the recovery in shipping and oil prices will take time. Iraq's oil minister has indicated a need for higher quotas to address shortfalls caused by the conflict, with potential adjustments to be considered in the 2027 capacity review.