OPEC+ Agrees to Further Oil Output Hike Amid Reopening of Strait of Hormuz

OPEC+ has agreed to increase oil production by 188,000 barrels per day from August, further adding to global supply at a time when oil prices are falling.

The group's seven core members, which include Saudi Arabia, Russia, and Iraq, have been gradually unwinding their production cuts since April, with the latest hike being part of this phased rollback.

The increase is seen as a response to the gradual reopening of the Strait of Hormuz for oil exports, which had been closed due to the US-Israeli war on Iran in February.

Oil prices have fallen to pre-war levels, pressured by lower Chinese imports and higher exports from non-Middle East producers. Despite persisting supply disruptions, Brent crude prices traded near $72 per barrel last Friday, down from recent peaks of more than $120 per barrel.