OPEC+ has announced plans to pump more oil as the price of crude continues to decline around the world.
The energy cartel said that it has agreed to a further increase its output at a time when oil prices are falling amid the gradual reopening of the Strait of Hormuz waterway near Iran.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) has agreed to increase its production by 188,000 barrels of oil per day starting in August.
The latest output increase comes after OPEC+ already raised its daily oil production this year by 800,000 barrels.
However, the output increases have remained largely on paper because of the U.S.-Israeli war against Iran, which closed the Strait of Hormuz to tanker traffic.
OPEC+ output fell ‌to 33.13 million barrels per day in May, down from 42.77 million barrels a day in February. Production has yet to recover as the Strait of Hormuz gradually reopens.
News of the latest production increase comes as crude oil prices continue to fall dramatically.
Brent crude oil, the international standard, is currently trading at $71.92 U.S. a barrel, down from more than $120 U.S. a barrel in March when the Iran war began.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading at $68.50 U.S. a barrel.
