The agreement from the seven nations, which also includes Algeria, Iraq, Kazakhstan, Kuwait, and Oman, to boost production by 188,000 barrels per day was reached following a virtual meeting held on Sunday.
This decision is largely symbolic, occurring as Iran restricts access to the Strait of Hormuz, a crucial passage where approximately 20% of the world’s oil and natural gas trade occurs, amid the ongoing U.S.-Israeli conflict. This situation has halted much of the oil flow from Gulf producers, significantly reducing millions of barrels per day from the global market.
Additionally, this follows the United Arab Emirates’ recent exit from the OPEC oil cartel, disrupting the 65-year-old alliance that accounts for around 40% of global crude oil production and holds substantial sway over energy prices worldwide.
Iran is one of the 12 member countries of OPEC, while Russia, not a member, collaborates with the Vienna-based oil producers through the OPEC+ alliance.
The seven countries pledged to conduct monthly meetings “to review market conditions, conformity, and compensation,” planning their next gathering for June 7.
