The Organization of the Petroleum Exporting Countries (OPEC plus) has agreed to raise oil production in July as the United States and Iran struggled to reach an agreement to end the war.
According to the cartel’s statement released after its virtual meeting today, the seven OPEC plus countries, which include Saudi Arabia, Russia, Algeria, Iraq, Kazakhstan, Kuwait and Oman, have agreed to increase oil output targets by about 1,88,000 barrels per day next month. This is the fourth increase amid the West Asia crisis.
The war, which began after US-Israeli strikes on Iran on 28th February this year, has cut oil flows through the Strait of Hormuz, creating the world’s biggest-ever supply crisis.
Key OPEC plus members, including Saudi Arabia, have been unable to supply customers in full since the end of February. The crisis for OPEC plus deepened when the United Arab Emirates left the Organisation of the Petroleum Exporting Countries after almost 60 years.