(Photo: REUTERS/Dado Ruvic_

Following a meeting in Vienna, Austria, key members including Saudi Arabia, Russia, and six others agreed to raise output by 548,000 barrels per day. This surpassed analysts' previous projections of an increase of 411,000 barrels per day, which was the level for May, June, and July.

OPEC+ cited stable global economic outlook and favorable market fundamentals, such as low oil inventories, as key reasons for this production hike.

The decision came after a 12-day conflict between Iran and Israel, which pushed oil prices above 80 USD per barrel amid fears that the strategic Strait of Hormuz, a route for nearly 20% of global oil trade, might be closed.

Since 2022, OPEC+ with 23 member countries has implemented output cuts to support prices. However, starting in May, eight countries led by Saudi Arabia unexpectedly ramped up production, causing oil prices to decline. Currently, oil prices hover between 65 USD and 70 USD per barrel.