Seven members of OPEC+, comprising OPEC and allied producers including Russia, have agreed to a modest increase in oil output quotas for July. In a statement released Sunday, the group announced that targets will be raised by 188,000 barrels per day.
This move follows previous efforts from April to June, during which the seven members increased output quotas by nearly 600,000 barrels per day.
The latest decision is widely regarded as largely symbolic due to the ongoing war in the Middle East. The conflict has choked off the Strait of Hormuz, a critical waterway through which one-fifth of the world's oil passes.
With the effective shutdown of the Strait of Hormuz and a blockage of exports from the Persian Gulf, vast amounts of the world's oil remain stranded. These conditions make it nearly impossible for most members to implement the production increase.