OPEC+ has approved a sixth consecutive monthly increase in oil production quotas, signaling that key Gulf producers are growing more confident that immediate threats to regional shipping routes are diminishing.
The decision, reached during an online meeting of seven key alliance members, continues the group's gradual return to higher output levels after months of voluntary cuts designed to support prices amid geopolitical uncertainty.
Brent crude fell in the session as traders digested the news of the continued supply expansion.
The move underscores a shift in market sentiment, with investors increasingly pricing in a stabilization of the Strait of Hormuz and other critical chokepoints.
While shipping risk remains a background factor, the willingness of OPEC+ to expand supply suggests that the cartel views the current disruption risk as manageable rather than acute.
This latest hike follows a series of incremental increases, including a recent 188,000 barrels per day raise for August.