OPEC+ has approved a further increase in oil output, adding 188,000 barrels per day to collective quotas, delegates confirmed. The decision comes as crude prices hover near levels seen before the recent escalation in the Middle East. The move suggests the group sees sufficient market stability to absorb additional supply.
The production hike follows signs that shipping through the Strait of Hormuz is beginning to recover after earlier disruptions. Analysts say the decision reflects OPEC+'s calculus that geopolitical risks are easing. The cartel appears intent on maintaining its market share amid rising output from non-member producers.
Under the agreement, the new quotas will take effect in the coming months. Brent crude has traded in a narrow range, with futures near $70 per barrel. The increase represents a modest addition to global supply, which has been constrained by voluntary cuts from several key members.
The impact on gasoline prices for consumers is expected to be limited, given the relatively small size of the quota adjustment. However, further increments could materialize if the recovery in Hormuz traffic continues. Traders will watch for signs that OPEC+ plans to accelerate output increases later this year.
Some analysts caution that demand weakness in China and Europe could undercut the effect of any supply increase. The IEA has warned that the market may face a surplus in 2024 if production cuts are fully unwound.