Key members of Opec+ kept output unchanged for October in an online meeting on Sunday, after six straight monthly increases.
The meeting, which included Saudi Arabia and Russia, came as the producer group seeks this month to complete the unwinding of a layer of production cuts totalling 1.65 million barrels per day, announced in 2023.
Last month, the group, of which Iraq, Kuwait, Kazakhstan, Algeria and Oman are also members, agreed to increase output by 188,000 bpd for September, the same level for the previous three months.
Before that, Opec+ had opted to raise production by 206,000 bpd each month for April and May, while pausing output increments for the first three months of the year due to seasonality affecting demand.
The seven Opec+ countries will continue to hold monthly meetings to review market conditions, with the next meeting to be held on October 4, Opec said on Sunday.
The group also increased production by 137,000 bpd for October, November and December from the 1.65 million adjustments of three years ago.
The UAE left the group in May after nearly six decades.
Oil markets remain volatile
The latest Opec+ announcement comes as oil markets remain volatile amid continuing conflict between Iran, a key Opec member, and the US. The Strait of Hormuz, the vital waterway that transported about 20 per cent of global supply of crude and liquefied natural gas before the fighting started on February 28, remains effectively closed.
Oil prices surged to an intraday high of $126 per barrel in late April following attacks by the US and Israel on Iran and retaliation from Tehran on America's Gulf neighbours and Iraq.
Prices, however, fell in subsequent months amid peace talks between the US and Iran to end the conflict and reopen the strait.
Oil again started trading higher this week amid renewed fighting between the US and Iran that raised concerns about heightened disruption in the Strait of Hormuz.
Brent, the benchmark for two thirds of the world's oil, jumped 0.8 per cent to settle at $96.28 a barrel. West Texas Intermediate, the gauge that tracks US crude, added 0.2 per cent to close at $82.44 a barrel.
The US and Iran traded strikes, with Washington hitting a number of sites near the strait, while Iran launched ballistic missiles towards US military positions in Jordan.
Kuwait said its forces intercepted a new round of attacks on Thursday morning. War is expected to continue into next year, with the Pentagon planning to extend US military presence across the Middle East, The Wall Street Journal reported.
Meanwhile, Iran continued to attack ships in the Strait of Hormuz, disrupting the flow of oil to global markets. Two Filipino crew members were killed in an attack on a Saudi supertanker on Monday.
Shipping traffic across the strait has been reduced significantly since the start of the war, with only a few vessels crossing the channel on a daily basis compared to more than 100 before the conflict.
