Seven core OPEC+ members agreed on July 5 to increase their collective production target by 188,000 barrels per day. This output hike becomes effective in August.
The move marks the fifth consecutive monthly increase. The alliance continues to unwind voluntary supply cuts originally implemented in April 2023.
Brent crude prices have cooled to approximately $72 per barrel. Easing geopolitical tensions and the reopening of the Strait of Hormuz contributed to the decline.
The reopened strait has facilitated a recovery in crude exports from the Gulf. Markets are currently weighing the new OPEC+ barrels against a potential global surplus.