A group of oil-exporting countries has agreed to a modest increase in oil production, though current prices are already relatively low.
Seven OPEC+ nations have said they will increase their production goals by 188,000 barrels per day. The participating countries are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.
Multiple nations in the Middle East have had their oil production throttled by the war in Iran, which closed the Strait of Hormuz, a key oil shipping lane in the region.
A temporary agreement between Iran and the Trump administration reopened the strait, meaning more oil should be able to flow and reach the market, sending prices downward.
The strait’s closure had caused a supply crunch, sending oil prices as high as $120 per barrel. On Monday, international benchmark Brent crude was trading at about $72 per barrel, close to where it was before the war began.
In a statement on the production increases, OPEC said the countries “reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse” the increase.
