The expansion involves a coalition led by Saudi Arabia, alongside Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. This uptick in supply coincides with a stabilizing situation in the Strait of Hormuz, where tanker traffic is steadily rebounding following a mid-June interim agreement between the U.S. and Iran to de-escalate tensions in the vital waterway.

Commerzbank Research analysts noted that the combination of restored shipping corridors and the group’s decision to flood the market with more crude has triggered concerns over a supply glut. Following these signals, West Texas Intermediate crude futures slipped 0.2% to $68.58 per barrel, while Brent crude fell 0.4% to $71.86. Asian equity markets reacted with volatility, as Japan’s Nikkei and South Korea’s Kospi dipped, while indices in Hong Kong and Malaysia saw modest gains.