OPEC+ has reached a preliminary agreement to increase oil production quotas by 188,000 barrels per day starting in August. This move represents the fifth consecutive increase as the cartel continues to unwind production cuts introduced in recent years.
The decision comes as talks between the United States and Iran to end the war have eased pressure on oil supplies. While broader political and market volatility persists, the peace pact raises the prospect of more supply eventually hitting the market.
As a result, oil prices are tumbling globally. The peace deal between the US and Iran has unleashed a wave of supply that is overwhelming demand from buyers and prompting concerns over a potential glut of crude.