Skip to Content Subscribe Our Offers My Account Manage My Subscriptions FAQ Newsletters Canada Canadian True Crime Canadian Politics Health World Israel & Middle East Financial Post NP Comment Longreads Puzzmo Diversions Comics NP News Quiz New York Times Crossword Horoscopes Life Eating & Drinking Style Sponsored Play for Ontario Travel Travel Canada Travel USA Travel International Cruises Travel Essentials Culture Books Celebrity Movies Music Theatre Television Business Essentials Advice Lives Told Tails Told Shopping Buy Canadian Home Living Outdoor Living Kitchen & Dining Tech Style & Beauty Personal Care Entertainment & Hobbies Gift Guide Travel Guide Amazon Prime Day Deals Savings National Post Store More Sports Hockey Baseball Basketball Football Soccer Golf Tennis Driving Vehicle Research Reviews News Gear Guide Obituaries Place an Obituary Place an In Memoriam Classifieds Place an Ad Celebrations Working Business Ads Archives Healthing Epaper Manage Print Subscription Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ Newsletters Canada World Financial Post NP Comment Longreads Puzzmo Diversions Life Shopping Epaper Manage Print Subscription HomeNewsWorldIsrael & Middle EastOPEC+ plans quota increase as Middle East tensions ease'Assuming shipping continues to normalize, July will show an improvement, with August probably being the month where the pickup accelerates,' says analystAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.OPEC+'s latest quota increase will take effect in August 2026. Photo by JOE KLAMAR /AFP/FileSeven OPEC+ members decided on Sunday to again raise oil production quotas as Gulf countries reel from the Middle East war.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorMinisters from key OPEC+ countries Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman met virtually on Sunday and “decided to implement a production adjustment of 188 thousand barrels per day,” a statement from the organization said, adding that “this adjustment will be implemented in August 2026.”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.Columnist Jesse Kline keeps you up to date with what’s happening in Israel and the effects of antisemitism on life here in Canada. Friday mornings.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Channel Israel will soon be in your inbox.We encountered an issue signing you up. Please try againBetween the first quarter of 2026 and May, combined production by Saudi Arabia, Iraq, and Kuwait — three of the seven countries raising their quotas — fell by some six million barrels per day, OPEC data have shown.But on June 17, Tehran and Washington signed a memorandum of understanding, committing themselves to removing obstacles to maritime traffic in the Strait of Hormuz for the duration of talks following the signature.Giovanni Staunovo, a commodity analyst at the Swiss bank UBS, told AFP that “for now, production is probably still below” OPEC+’s targets.Time-consuming restartSince the memorandum of understanding was signed, ship transport in the region has slowly recovered, with oil prices dropping sharply to levels comparable to those seen before the war in anticipation of a gradual return to normal.Oil supplies through this shipping lane may already have exceeded ten million barrels a day, according to a U.S. official quoted by the Bloomberg agency.But the oil currently leaving the strait has up to now been sitting in tankers or storage facilities, said Saxo Bank analyst Ole Hansen, adding that “shut-in production takes time to restart.”“Assuming shipping continues to normalize, July will show an improvement, with August probably being the month where the pickup accelerates,” he told AFP.Cohesion at stake“For next year, everybody is anticipating a surplus,” Jorge Leon, an analyst at Rystad Energy, told AFP.Rebuilding the inventories that countries tapped during the conflict should help absorb the flows at first, but producers may face a strong downward pressure on prices later on.And OPEC+, already weakened by the departure of the United Arab Emirates from the group in May, will have to manage sliding prices while members will push for production increases.Iraq, in particular, has asked the cartel to raise production quotas to make up for the shortfall it incurred during the war in the Middle East, the Iraqi Oil Ministry said in late June.But Hansen said the need for a higher quota “is not imminent” as production volumes are still far from their pre-conflict levels.“Iraq’s request may become part of the 2027 capacity review, where production baselines will be examined,” he added.At the end of the year, the OPEC+ is indeed due to reassess members’ quotas based on their ability to produce more, which could become a thorny issue.Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.