The OPEC+ alliance announced an increase of 188,000 barrels per day in crude oil production starting June 2026. This adds to the 206,000 barrels rise announced in April. The blockade in the Strait of Ormuz, however, restricts its effect on global markets.
Following a virtual meeting after the United Arab Emirates' exit from the bloc, Saudi Arabia, Iraq, Kuwait, and Algeria—OPEC members—along with Russia, Oman, and Kazakhstan announced the production hike.
In a joint statement, the countries said the decision "reaffirms their commitment to market stability". They added they will continue "supervising and closely evaluating market conditions in their ongoing efforts to support its stability".
The move aims to address oil price volatility amid geopolitical tensions. However, the unresolved conflict between Iran and the United States has blocked the Strait of Ormuz, preventing exports of Gulf crude.
While the increase is significant on paper, its impact on international markets could be limited as long as restrictions persist in this key strategic route.
