OPEC+ has reached a preliminary agreement to raise oil production quotas by 188,000 barrels per day in August, delegates said.
The decision marks another step in the alliance’s gradual reversal of output cuts implemented during the pandemic, bringing the total quota increase since the start of the war to 940,000 barrels a day.
The move suggests that Gulf producers are growing more confident that the immediate threat to regional shipping routes is diminishing, particularly if a US-Iran peace pact holds.
By committing to higher output, the cartel is signaling that it no longer views supply disruption as an imminent risk requiring precautionary restraint.
Brent crude faced selling pressure following the news, as traders digested the prospect of additional supply entering the market.
The price action reflects a shift in market sentiment from geopolitical risk premium to fundamental supply concerns.