Kathmandu. The Organization of the Petroleum Exporting Countries (OPEC Plus) is likely to increase production quotas as post-war tensions in the Middle East gradually ease.

Analysts told AFP on Sunday that a decision on the expansion of production could be made at the next meeting. Saudi Arabia and Russia will meet virtually to discuss production quotas for the month of August.

Giovanni Stounov, commodity analyst at Swiss bank UBS, said OPEC Plus is likely to increase output by about 188,000 barrels per day as it continues the process of rolling back production cuts that began last month.

Disruptions on the Strait of Hormuz during recent conflicts in the Middle East have disrupted oil supplies. After the recent agreement between Iran and the United States, there has been an improvement in maritime traffic.

Analysts say oil prices have returned to pre-war levels as supply systems have normalised, and daily supplies are rebounding.

Ole Hansen, an analyst at Saxo Bank, said it will take time to resume production and hinted that the pace of production growth could pick up further in the near future.

Experts expect supply in the market to be higher next year. But there have also been warnings that issues such as capacity re-evaluation and quota determination could become challenging within OPEC Plus.