Exterior views of OPEC (Organization of the Petroleum Exporting Countries) headquarters in Vienna, Austria, on April 28, 2026. Christian Bruna/Getty Images
Seven OPEC+ countries—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—agreed to increase oil production by 188,000 barrels per day in August as part of a gradual rollback of the voluntary production cuts they adopted in 2023.
The countries said they remain committed to stabilizing the global oil market and will continue to adjust production based on market conditions. They emphasized they retain the flexibility to increase, pause, or reverse the production increases if necessary.
The group also reaffirmed its commitment to complying with OPEC+ production targets and pledged to fully compensate for any overproduction since January 2024. The countries will continue meeting monthly to review market conditions, with their next meeting scheduled for Aug. 2.
OPEC+ first announced the voluntary production cuts in 2023 as oil prices weakened amid concerns about slowing global economic growth and uncertain demand, particularly from China.
Several member countries, led by Saudi Arabia and Russia, agreed to remove millions of barrels of oil from the market at that time in an effort to support prices and stabilize the global energy market.
The alliance later extended those cuts and added further voluntary reductions. Sunday’s decision represents another step in gradually restoring some of that production.
OPEC+ countries, including Russia, collectively produced about 50 percent of the world’s crude oil last year, according to International Energy Agency estimates.
In recent months, the price of crude oil has gone from $114.01 per barrel on April 6 to $71.87 as of June 29, according to the U.S. Energy Information Administration.
Iran warned on July 2 that oil tankers and commercial ships passing through the Strait of Hormuz must use routes approved by Tehran or face an immediate military response.
Iran’s military command said the waterway falls under its sovereignty and called its security a “red line.” The warning was made after Iranian state media reported a cargo ship ran aground in the strait, allegedly after failing to use approved routes.
The Strait of Hormuz is a key global oil chokepoint, carrying about one-fifth of the world’s traded oil. The dispute has become a major issue in U.S.–Iran talks following a temporary peace deal. Iran says it wants to control vessel routes and eventually charge passage fees, while the Trump administration insists the strait must remain open to international shipping.
The average cost of a gallon of regular gas in the United States has dropped from $4.22 a month ago to $3.80 as of July 5, according to AAA.
