The OPEC+ alliance chose to continue the policy of increasing oil supplies, despite the fact that shipping traffic through the Strait of Hormuz remained below pre-war levels, and the state of caution in the energy market continued.
The Organization of Petroleum Exporting Countries (OPEC) and its allies agreed, on Sunday, to raise daily production by 188,000 barrels, the fifth consecutive increase since the start of the Israeli and American attacks on Iran on February 28.
In its statement published online, the coalition did not address the US-Iranian conflict, only affirming that it would continue to monitor market conditions during the next stage.
Oil markets have witnessed widespread turmoil in recent months, after the Strait of Hormuz remained effectively closed during a large part of the conflict period, coinciding with damage to energy facilities in the Middle East, and the closure of some oil companies’ production sites.
During the war, oil prices rose sharply, and briefly touched their highest level in 4 years, exceeding $126 per barrel in April, before gradually declining, as Brent crude settled, on Friday, at $72.12.
After the ceasefire was announced, researchers at Goldman Sachs expected that the average price of a barrel of oil would reach $75 next year, a retreat from previous estimates that suggested prices would remain above the $100 level until 2027.
In mid-June, the United States and Iran agreed to a ceasefire that included commitments to reopen the Strait of Hormuz, through which about 20% of global oil supplies pass, without imposing traffic fees during the agreement’s 60-day period.
However, the mutual attacks near the strait during the past month, and the targeting of some commercial ships, kept the risks present for operators and ship crews, despite the entry into force of the ceasefire. (cnn)
