OPEC Plus Pledges to Pump More Even as Oil Prices Fall

The oil cartel known as OPEC Plus announced on Sunday a modest increase in how much it plans to pump, continuing its monthslong pledges to step up global supply amid extreme volatility in the energy markets and the Middle East.Since March, the war in Iran caused the price of oil to surge and, more recently, to drop drastically as delegates from Iran and the United States attempt to negotiate a lasting resolution to the conflict.The fallout of the war has landed squarely on delicate geopolitical alliances in the region.

And the clout of OPEC, long dominated by Saudi Arabia, was tested in late April when the United Arab Emirates, a regional power at odds with Riyadh over how much oil it should produce, quit the alliance.The Organization of the Petroleum Exporting Countries and some of its allies including Russia, operating as a group called OPEC Plus, said it would boost production by 188,000 barrels per day in August.The countries involved in Sunday’s decision were Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.“The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach,” the consortium of oil-producing nations said in a statement.The United States and Iran signed a framework agreement on June 17 to reopen the Strait of Hormuz, ending a nearly four-month closure that severely restricted global oil supplies.The disruption to shipping made OPEC’s production increases during the war largely symbolic.

But more ships have started to move through the strait in the past two weeks, and analysts said the oil market is not likely to register the decision on Sunday.Saudi Arabia and Persian Gulf producers are already actively ramping up oil shipments, and prices have fallen back near prewar levels.

Brent crude, the global market benchmark, was at about $72 a barrel on Friday after going as high as $118 in the early sta...