OPEC+ agrees third oil output quota hike since Hormuz closure
OPEC+ has agreed to a modest oil output increase for June, though the hike will remain largely on paper as the ongoing Iran war continues to disrupt Gulf supplies through the Strait of Hormuz.
On Sunday, OPEC+ reached an agreement to implement a modest increase in oil output for the month of June. This decision marks the third time the coalition has raised its oil output quotas since the closure of the Strait of Hormuz. As part of the newly established production targets, seven specific OPEC+ countries are slated to raise their collective oil output by 188,000 barrels.[1][2]
However, the planned production increase is expected to remain largely theoretical rather than resulting in immediate physical supply additions to the global market. The ongoing war in Iran continues to cause significant disruptions to Gulf oil supplies navigating through the Strait of Hormuz, meaning the newly agreed-upon output targets will remain largely on paper as long as the conflict persists.[1]
