OPEC oil output jumps in June as Gulf producers begin reviving supply, Reuters survey shows

OPEC June oil output rose to levels not seen in over two decades, according to a Reuters survey, as Gulf producers revived supplies that were shut during the Iran war. The effective closure/reduced risk around the Strait of Hormuz also supported supply restoration. This adds near-term downward pressure on crude prices and increases supply risk to the market’s tightness assumptions.

Analysis

OPEC June oil output rose to levels not seen in over two decades, according to a Reuters survey, as Gulf producers revived supplies that were shut during the Iran war. The effective closure/reduced risk around the Strait of Hormuz also supported supply restoration. This adds near-term downward pressure on crude prices and increases supply risk to the market’s tightness assumptions.