Iraq oil supply strategy. the group, which includes Iraq, confirmed a moderate increase in production for July, matching previous monthly rises. This move surprised traders who had expected a much larger hike in output levels.
Brent crude rose $1.34 to reach $64.12 per barrel, rebounding from last week’s losses. Meanwhile, U.S. West Texas Intermediate gained $1.52, reaching $62.31 per barrel after last week’s decline.
These price jumps followed OPEC+ plans to raise output by 411,000 barrels per day in July. Iraq oil supply strategy continues to influence the group’s production levels and market expectations.
Although many feared a larger output hike, the actual increase came as a relief to investors. Some analysts noted that a surprise increase would have triggered a sharp fall in oil prices. The price stability shows that the July target had already been factored into market forecasts.
Iraq and Kazakhstan have drawn attention for producing more than their agreed quotas recently. Because of this, the group’s moderate action may also aim to pressure over-producing members. Kazakhstan has resisted further cuts, stating it will not reduce production, according to local energy officials.
Looking forward, experts expect another 411,000-barrel increase in August if demand conditions remain favorable. Tight global oil supplies and stronger-than-expected economic data continue to support demand for crude. Seasonal travel patterns also add upward pressure, especially during the U.S. summer driving season.
In fact, gasoline demand in the U.S. recently jumped by nearly 1 million barrels per day. That marks one of the highest weekly increases in recent years, giving additional support to oil prices.
Meanwhile, concerns remain over low U.S. fuel inventories and upcoming hurricane risks. These supply challenges may drive further price gains in the short term.
At the same time, U.S. crude production slightly declined last week, falling to its lowest since 2021. Traders are closely watching whether lower prices will reduce American output in coming weeks.
OPEC+ will meet again to discuss August production, keeping Iraq oil supply strategy in focus. Energy markets will likely stay volatile as supply and demand forces continue to shift.
Iraq oil supply strategy plays a key role in shaping the group’s decisions and market direction.