7 OPEC+ countries agree to expand monthly oil production modestly as prices slide

Seven nations within the OPEC+ oil-producing alliance have agreed to a modest increase in their monthly oil output, adding 188,000 barrels per day starting in August. This move follows a significant slide in fuel prices, reaching levels not seen since before the recent conflict between the U.S. and Iran.

The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, announced the decision on Sunday. The participating countries include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. This marks the fifth consecutive month OPEC+ has agreed to raise oil outputs.

"The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach," the group stated. Market optimism, fueled by an interim deal between the U.S. and Iran to end hostilities and allow passage through the Strait of Hormuz, has caused crude oil prices to tumble. Brent crude closed under $72 a barrel on Friday, nearing pre-war prices.

Despite the deal, tensions over the waterway persist, with Iran's military command warning tankers to use approved routes. The war had previously created an energy crisis, with limited production hikes unable to offset the impact on global supplies. Experts had warned that elevated fuel prices would likely persist long after the conflict's end, but the current market conditions suggest a potential shift.

“

The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach.