NEW YORK (AP) – In a recent virtual meeting, eight members of the OPEC+ alliance, which comprises oil-exporting nations, announced a decision to increase oil production by 548,000 barrels per day starting in August. This resolution is aimed at potentially lowering gas prices further in the coming year.

The countries involved in this agreement include prominent players Saudi Arabia and Russia, who have significant influence over the production policies within the OPEC+ framework. The group cited a "steady global economic outlook" alongside low oil inventories as justifications for the production increase during the meeting held on Saturday.

In the context of fluctuating oil prices, the market experienced a dramatic surge last month due to the escalating conflict between Israel and Iran, which lasted for 12 days. However, prices subsequently plummeted following U.S. diplomatic efforts that resulted in a peace agreement after targeted airstrikes on key Iranian nuclear sites.

Saudi Arabia, as the leading force within the OPEC cartel, and Russia, recognized as the foremost non-OPEC member in the 22-country coalition, play pivotal roles in determining production levels that influence global oil prices.

The group’s meeting also included Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, contributing to the strategic conversations about oil production and pricing. The recent decision to increase production aligns with a plan established in December, which initially delayed production increases but outlined a gradual rise by a total of 2.2 million barrels per day over an 18-month period, set to commence from April 2023 and conclude in the fall of 2026.

This earlier delay was primarily attributed to a demand that fell short of expectations, coupled with ongoing competition from non-allied oil-producing nations, which complicated the market dynamics.