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Kuwait's crude oil production rose sharply to 1.65mn barrels ⁠per day in June from 580,000 bpd in May, a source familiar with the matter told Reuters on Thursday, as the Opec member boosts exports through the Gulf following the US-Iran interim peace agreement.The jump in Kuwaiti output adds to signs that Gulf oil flows through the Strait ​of Hormuz are recovering rapidly following disruption caused by the Iran war, with stranded cargoes gradually clearing the Strait of Hormuz and exporters ‌restoring production.Kuwait was producing about ⁠2.5mn ​bpd before Iran's effective closure of the Strait in ​response to US and Israeli attacks at the end of February which prompted the country and other Gulf producers like Saudi Arabia and Iraq to cut millions of barrels per day of oil output.Daily production rose to as high as 1.9mn bpd in the last 10 days of June, the source, who declined to be identified by name, added. Oil prices extended earlier losses on Thursday following ‌the Reuters report. Crude ‌had already been trading ⁠at its lowest level since late February, just before the ⁠war began.A spokesperson ⁠for state oil company Kuwait Petroleum Corp did not immediately reply to a Reuters request for comment. The company on June 18 said that all force majeure notices issued during the war were lifted, while a tender document a day later showed the ​company was offering cargoes to buyers.Kuwait was one of the hardest-hit countries in the Gulf from the Iran war because of the effective halt to flows through the Strait. Unlike Saudi Arabia and the United Arab Emirates, which can use export routes other than the Strait of Hormuz, Kuwait relies almost entirely on the waterway for its crude exports, leaving it effectively cut ‌off from ​key markets such as Asia during the disruption. 

Iraq is Opec's second-largest producerIraq's economy under strain after Hormuz disruptionIraqi exit would be a blow to the oil exporters' groupOpec was founded in the Iraqi capital Baghdad Iraq has considered leaving Opec if ‌the oil producer group does not allow Baghdad to significantly increase oil production, sources ​with knowledge of the matter told ‌Reuters.The prospect of Iraq leaving would be a serious blow to the Organization of ‌the Petroleum Exporting ⁠Countries, which saw the United ‌Arab Emirates walk away less than two ‌months ago.Iraq is the group's second-largest producer after Saudi Arabia and one of its five founding ⁠members. Opec was formed in the Iraqi capital in 1960.The country relies on oil for the bulk of its income, which has been slashed since the Iran war effectively blocked exports via the Strait of Hormuz.The government is grappling with a financial crisis as a result of the war and a significant rise in its Opec quota should be treated seriously, a senior Iraqi oil ministry official told Reuters on Thursday.Iraq had considered leaving Opec, but the current plan was to ​remain a member and seek a higher quota, he added.Iraq's quota for July is 4.378 mn barrels per day though current output is significantly below this because of the Hormuz disruption."Saudi Arabia and other Opec allies should ‌treat this matter with the utmost seriousness. ⁠Failing that, Iraq ​will be compelled to consider all available options," he said.Asked if they had discussed ​an Opec exit, he said: "It's still premature for this step".Iraq's oil ministry said on Thursday that reports suggesting Baghdad was considering ending its membership in Opec did not reflect the Iraqi government's official position.Opec and Saudi authorities did not immediately respond to requests for comment.Oil prices briefly extended their decline after the Reuters report, trading below $73 a barrel.The Iraqi officials' comments come as Opec+, which groups Opec members with Russia and other producers, is undergoing a review of members' oil production capacity.The assessments will be used for 2027 output baselines, from which quotas are set.Iraq has struggled to meet its Opec quotas in the past, ‌as it expanded oil capacity with the ‌help of Western oil companies.Iraq pumped 1.48mn bpd in May, according to Opec data, down from almost 4.2mn in February before the ⁠closure of Hormuz.A government spokesperson said Iraq ⁠was working to return to full export capacity, but declined to comment further on its Opec quota or the possibility of exiting the group."Iraq is working to restore its full oil export capacity and aims to raise oil production to 7mn barrels per day over the coming years," Iraqi spokesperson Haider al-Aboudi said.There was no official comment from Russia on the Iraqi officials' comments, but a Russian oil ​source said they do not represent a major challenge for the Opec+ deal and a slight increase in Iraq's quota may help.Since taking office in May, Iraqi Prime Minister Ali al-Zaidi has signalled that rebuilding Iraq's economy, attracting foreign investment, and combating corruption will be central to his administration's agenda.On Wednesday, he said Iraq wanted Opec to raise Iraq's oil output quota in line with its production capacity and population, state news agency INA reported.Seven core members of Opec+ have increased their output quotas from April to June by almost 600,000 bpd, although most have not been able to deliver on those ‌higher targets due to ​the disruption to Hormuz exports. 

Iraq plans to ‌restore ​crude ‌oil production gradually ‌to the ‌between ‌4.2mn and 4.3mn barrels per day, Iraq’s ​deputy oil minister for ‌upstream affairs said in ​a statement on Sunday. The proposed increases would restore output to ‌levels achieved ‌before the Iran war and resulting closure of the Strait of Hormuz. Iraq expects to return oil production from its southern fields ‌to levels exceeding 3mn barrels per ​day within one ‌to two months, Iraq’s state news ‌agency reported on ‌Friday, citing an oil ‌ministry spokesperson. Iraq normally exports a total of around 3.6mn barrels of oil per day and before the Iran war around 3.4mn bpd flowed through its southern Basra terminals. Iraq, like other Gulf oil producers, has suffered a drop in oil revenue as a ​result of the effective closure of the Strait of Hormuz amid the US-Iran War. Before the disruption caused ‌by the war, Iraq mainly exported its fuel oil from the Gulf port of Khor al-Zubair, but the conflict has forced it to seek alternative routes after the strait was closed and storage facilities began filling up. “There was no fixed timetable for restoring exports to previous levels because production capacity and reservoir conditions vary from one field to another,” Iraqi ‌oil ministry spokesperson Saleem ‌al-Rikabi said. He said the ministry was currently prioritising fields producing associated gas, liquefied gas and condensates, adding that restoring export capacity and tanker activity would progress alongside production recovery. Earlier, Iraqi oil officials told Reuters that Iraq has increased crude oil production from its southern fields by 250,000 barrels per day to around 1.75mn barrels per day as more tankers load crude from the country’s ports. 

An oil facility in the Kharg Island. Iran’s crude oil production slumped by 19% last month, according to data from Opec, while the US blockaded the country’s ports during their ongoing conflict, reports Bloomberg. Iranian output fell by 546,000 barrels a day to 2.33mn a day, according to data published by the Organization of the Petroleum Exporting Countries in its monthly report on Thursday. Oil fell to the lowest since the early days of the Iran war on signs that flows through the Strait of Hormuz are rising and on progress toward an interim peace deal. Oil prices are down about 30% since the peak of the conflict. Markets were oversupplied before the war broke out in February, and Brent crude, the global benchmark, had been hovering near $70 per barrel. 

Opec+ leader Saudi Arabia wants the group to consider reviving more oil production ahead of its scheduled return at the end of next year amid a push to reclaim market share, people familiar with the matter said.Key alliance members will hold a video conference on Sunday that will consider what to do with a 1.66mn barrels a day tranche of halted supplies, having just fast-tracked the return of a previous layer over the past five months.No decision has been made, and it’s not clear whether any increase would be agreed as soon as Sunday or only in later months, some of the people said. Saudi Arabia, which drove the accelerated restart in a bid to recapture global market share, wants to further boost production as it seeks to offset lower prices with higher volumes, they said. Any proposal to increase production could run into opposition from other members keen to prop up prices.If it happens, such a move would cement a dramatic Opec+ strategy shift toward defending market share over prices, piling pressure on some member nations, especially those that can’t pump more. Saudi Arabia’s Crown Prince Mohammed bin Salman is set to visit Washington in November to meet President Donald Trump, who’s called for lower fuel prices.A range of options remains possible, including pausing hikes for a period, the people added. The Opec+ alliance is jointly led by Saudi Arabia and Russia.Delegates from the Organisation of the Petroleum Exporting Countries have said Saudi Arabia is eager to claw back sales volumes ceded to rivals like US shale drillers.“Our latest soundings from the group suggest they are very much considering unwinding that final tranche” of halted supply “sooner rather than later,” Livia Gallarati, global crude lead at Energy Aspects Ltd, said in a Bloomberg television interview. In practice, any volumes added to the market would be smaller than pledged because of spare-capacity constraints, she added.Officials in Saudi Arabia weren’t immediately available for comment outside the country’s normal office hours.Further production increases by Opec+ threaten to swell a surplus in the fourth quarter anticipated by forecasters like the International Energy Agency, adding to downward pressure on prices. Even so, oil futures which initially fell when the group began restoring its 2.2mn barrels a day of shuttered supply back in April have actually rallied since.While extra oil would be a boon for consumers and a win for Trump, it’s a financial threat for producers from the US shale industry to Opec+ members themselves.The majority of crude traders surveyed by Bloomberg this week had expected Opec+ to pause before proceeding with any further increases, as global markets are already on track for a surplus this year. That was before Reuters reported the possibility of an increase.Brent futures are down roughly 10% this year, trading around $65.70 a barrel in London on Friday. Goldman Sachs Group Inc predicted in a note that the international benchmark will slump to the low-$50s next year as markets face oversupply.Trump has called for lower prices in order to cushion the cost of living, and tame inflation while he presses the Federal Reserve to reduce interest rates. The president has also said that weaker prices will help him pressure Russia to end its war against Ukraine.Sunday’s meeting is one of the countries’ regular monthly gatherings to review the oil market and adherence with existing supply restrictions.

Eight Opec+ countries to meet on SundayOpec+ could also pause hikes for October, source saysNo immediate comment received from Opec or Saudi authoritiesEight Opec+ members will consider further raising oil production at a meeting on Sunday, two sources familiar with the discussions said, as the group seeks to regain market share.Opec+ has reversed its strategy of output cuts from April and has already raised quotas by about 2.5mn barrels per day, about 2.4% of world demand, to boost market share and under pressure from US President Donald Trump to lower oil prices.But those increases have failed to bring down oil prices, which traded near $68 a barrel supported by Western sanctions on Russia and Iran, encouraging further production gains in rivals such as the US.Another output boost would mean Opec+, which pumps about half of the world's oil, would be starting to unwind a second layer of cuts of about 1.65mn barrels per day, or 1.6% of world demand, more than a year ahead of schedule.Eight Opec+ countries are due to hold an online meeting on Sunday expected to decide on October output.Opec+ includes the Organisation of the Petroleum Exporting Countries plus Russia and other allies.There is also a chance, some analysts and an Opec+ source said, that Opec+ could pause the increases for October. A final decision has not been made, the Opec+ source said.Opec headquarters and authorities in Saudi Arabia did not immediately respond to requests for comment.Brent crude was trading near $68 on Wednesday, down over 1% on the day but up from a 2025 low of near $58 in April.As well as sanctions, the Opec+ hikes falling short of the pledged amounts have also supported prices, analysts have said.Until April, Opec+ had been curtailing production for several years to support oil prices.At their last meeting in August, the eight members raised production by 547,000 bpd for September, completing a total increase in output for the year of 2.5mn bpd. That included a 300,000 bpd additional production allocation for the UAE.The next output cut layer of 1.65mn bpd is in place until the end of 2026, as is another 2mn bpd of cuts by the whole group.