Saudi Arabia, Russia, and six other prominent members of the OPEC+ alliance announced plans on Saturday to increase oil production in August by 548,000 barrels per day.
Analysts had anticipated that the alliance would opt for a production increase of 411,000 barrels per day, which had been the target set for May, June, and July.
This meeting follows a 12-day conflict between Iran and Israel, which briefly pushed prices above $80 a barrel due to worries about a potential closure of the critical Strait of Hormuz, a key transit point for around a fifth of the global oil supply.
The broader OPEC+ group, consisting of the 12-nation Organisation of the Petroleum Exporting Countries (OPEC) and its partners, initiated output cuts in 2022 to stabilise prices.
However, in a surprising policy change, eight members of the alliance led by Saudi Arabia caught the markets off guard by declaring significant production increases starting in May, resulting in a sharp decline in oil prices.
Currently, oil prices have been fluctuating between $65 and $70 per barrel. The country announced plans to increase oil production by 548,000 barrels per day in August.
Analysts had anticipated that the alliance would opt for a production increase of 411,000 barrels per day, which had been the target set for May, June, and July.
This meeting follows a 12-day conflict between Iran and Israel, which briefly pushed prices above $80 a barrel due to worries about a potential closure of the critical Strait of Hormuz, a key transit point for around a fifth of the global oil supply.
The broader OPEC+ group, consisting of the 12-nation Organisation of the Petroleum Exporting Countries (OPEC) and its partners, initiated output cuts in 2022 to stabilise prices.
However, in a surprising policy change, eight members of the alliance led by Saudi Arabia caught the markets off guard by declaring significant production increases starting in May, resulting in a sharp decline in oil prices.
Currently, oil prices have been fluctuating between $65 and $70 per barrel.
