OPEC+ off-target in July

The producers’ group missed its output increase target for the month and may soon face a critical test of its strategy

OPEC+ should have boosted oil production by more than 1.35m b/d by the end of July compared with its March output levels, in line with its targets. However, its actual output increase has fallen short, with production rising by only around 560,000b/d, according to Petroleum Economist estimates. This has also raised questions about its future strategy and market stability. With the high-demand summer driving season ending, OPEC+ may soon face a critical test of its production strategy. However, the Trump administration’s secondary sanctions might help reduce oversupply even if demand shows a seasonal dip. Petroleum Economist sees OPEC-9 output in July at 22.05m b/d, up from 21.87m b/d in June