OPEC brings oil back to market: output rises in July
OPEC countries continued to increase oil production in July 2026. The main growth came from Gulf producers, which are restoring output after a sharp supply cut in the spring, according to a Reuters survey.
Growth in July continued the recovery that began a month earlier. In June, 11 OPEC countries pumped an average of 19.43 million barrels of oil per day – a jump of 3.3 million barrels over May. The May figure of 16.13 million barrels per day was the lowest since at least 2000, based on Reuters survey data.
The sharp drop in production was primarily linked to the war around Iran and restrictions on tanker movement through the Strait of Hormuz. Saudi Arabia, Kuwait, and Iraq were forced to cut production as crude export capabilities shrank dramatically. As oil flows started recovering, countries began bringing idle capacity back online.
In parallel, OPEC+ is gradually unwinding part of the voluntary production restrictions that have been in place since 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman agreed to raise the target production level by 188,000 barrels per day in July. A similar increase of 188,000 barrels per day was also approved for August.
At the same time, the United Arab Emirates is no longer included in OPEC statistics: the country left the organization on 1 May 2026. Therefore, the group’s current figures are not directly comparable with periods when the UAE remained one of the cartel’s largest participants.
The actual return of additional oil volumes to the market matters for global prices. In previous months, OPEC+ quota increases announced were largely symbolic, as Gulf producers could not physically export additional volumes. The recovery in June and July means that part of those barrels are now genuinely coming back to the market.
For oil-importing countries, the rise in supply can help cap upward pressure on crude costs, but the market remains sensitive to the situation around the Strait of Hormuz and the further development of the Middle East conflict.
