OPEC+ tipped to raise quotas again as Middle East calms
Seven OPEC+ members are likely to raise oil production quotas on Sunday as Gulf countries are reeling from the Middle East war, analysts told AFP.
Saudi Arabia, Russia and five other members of the enlarged Organisation of the Petroleum Exporting Countries (OPEC+) are meeting online on Sunday to discuss quotas for August.
OPEC+ will likely continue "to unwind the production cuts at the same pace like in the previous months", said Giovanni Staunovo, a commodity analyst at the Swiss bank UBS, predicting an increase of 188,000 barrels per day.
"But for now, production is probably still below the group's targets," Staunovo told AFP.
Gulf countries had to cut output after the near-paralysis of the Strait of Hormuz orchestrated by Iran during the war in the Middle East, which blocked their oil exports for several months.
Since the signing of an MoU between Iran and the US on June 17, ship transport in the region has shown signs of recovery, and oil prices have dropped sharply.