Bloomberg reported that OPEC oil production rose in June, coinciding with the resumption of crude exports from the Gulf states through the Strait of Hormuz following the agreement between the United States and Iran.
According to a Bloomberg study, OPEC production rose by 2.34 million barrels per day to 18.75 million barrels per day, driven by significant increases in output from Kuwait, Saudi Arabia, and Iran. However, production remains below pre-war levels, before the US-Israeli war against Iran began on February 28th.
Even before the ceasefire agreement between Iran and the United States was reached in mid-July, the Gulf oil-producing states had already begun finding alternative routes to export some shipments through the Strait of Hormuz, which had been almost completely disrupted in the early stages of the war. With improved shipping conditions following the agreement, Saudi exports have reached approximately 90% of their pre-war levels, according to tanker tracking data.
Despite continued weak fuel demand in China, the world's largest oil importer, increased supply in the global market has led to surpluses in some parts, limiting gains in oil prices during the war and raising questions about the possibility of OPEC countries entering into greater competition for markets.
OPEC's production in June was still about 7.3 million barrels per day lower, or 28%, compared to February levels, after accounting for the impact of the United Arab Emirates leaving the organization.
It is worth noting that the UAE withdrew from OPEC last May, which gave it greater flexibility in oil production as navigation in the Strait of Hormuz returned to normal completely, while Iraq briefly hinted at the possibility of withdrawing if it did not get a higher production quota within the organization.
