The Organization of the Petroleum Exporting Countries (OPEC+) and its allies have agreed to increase oil production in September, as the Strait of Hormuz remains impassable for maritime traffic, UNN reports, citing CNN.
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The group of oil-producing countries will increase daily production by another 188,000 barrels per day, marking the cartel's sixth consecutive agreement to boost output amid the war with Iran. This increase completes the commitment to gradually reverse the 2023 decision to cut production by 1.65 million barrels per day.
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The publication notes that the group's statement did not mention the war with Iran or disruptions in the Strait of Hormuz, through which about 20 million barrels of oil passed before the war. Shipping through the strait has declined in recent weeks due to the resumption of strikes between the US and Iran. The Islamic Revolutionary Guard Corps is also striking vessels attempting to pass through the strait.
During a video conference, the OPEC Joint Ministerial Monitoring Committee expressed concern over attacks on energy infrastructure, which will lead to increased market volatility and require costly and lengthy repairs.
Oil prices rose after Iran's statements about stopping ships in the Strait of Hormuz01.08.26, 02:16
Disruptions in the oil market have also been exacerbated by the Russian-Ukrainian conflict and the blockade of the Bab el-Mandeb Strait by Iran-backed Houthi rebels, through which Saudi oil flows. This waterway was an alternative route from the Strait of Hormuz.
Oil prices rose, and Americans faced higher gasoline prices after the first ceasefire agreement between the US and Iran fell through last month.