OPEC+ has boosted crude supply amid Hormuz disruption and market oversupply concerns; coalition members shape global oil policy and prices.
Eight OPEC+ countries, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, have agreed to increase oil production by 206,000 barrels per day starting in May 2026. The move follows a recent surge in oil prices caused by the closure of the Strait of Hormuz, which has disrupted exports from key Gulf producers. Nigeria remains sidelined due to its inability to meet quotas. The decision reflects a cautious approach to market stability as disruptions continue.
The United Arab Emirates has announced it has withdrawn from OPEC and the OPEC+ alliance effective May 1, saying a review of its production policy and expanded domestic capacity require greater national control. The move removes a major spare-capacity holder and will weaken OPEC's ability to stabilise global oil supply when Gulf shipping resumes.
IMF says Saudi Arabia’s economy has shown resilience due to diversified infrastructure and rerouted oil flows, despite pressure from the Middle East conflict. Non-oil activity and exports are affected; forecasted growth adjusts as oil dynamics shift.
Oil flows through key Gulf routes have been disrupted as conflicts escalate. Countries are adjusting production and trade, while insurers assess risk. The Strait of Hormuz remains the focal point as sanctions’ adjustments and new toll discussions surface amid regional tensions.
OPEC+ has expanded oil production by 188,000 barrels per day for August, marking a fifth straight monthly increase. Seven core members—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman—are lifting quotas as market conditions prompt cautious but steady supply adjustments. Prices have cooled to near pre-war levels amid easing tensions in Hormuz and ongoing talks with Tehran and Washington.