OPEC+ is set to approve another increase in oil production quotas starting in August, adding approximately 188,000 barrels per day to the group's output targets.
The decision, expected to be finalized on Sunday, marks a continued effort by the cartel to normalize supply levels after months of voluntary cuts.
Seven OPEC+ members are poised to increase their oil production quotas on Sunday, a move that underscores growing confidence among Gulf producers that the immediate threat to regional shipping routes is diminishing.
The decision comes as global oil prices have softened, reflecting a gradual reopening of trade corridors and reduced risk premiums in energy markets.
The output increase adds to global supply amid falling oil prices due to a gradual reopening of the Strait of Hormuz and other key chokepoints.
Market participants view the quota hike as a signal that geopolitical tensions in the region are easing, allowing producers to prioritize market share over strategic stockpiling.