US Edition
OPEC+ debates theoretical oil output hike amid Iran war paralysis: Report
The increase would be largely symbolic as key members remain unable to raise production because of war-related disruptions and damage to Gulf infrastructure.
- OPEC will assess whether to announce a further increase in oil supply on Sunday, though any approved boost will largely exist on paper as key members cannot raise production due to the war with Iran.
- The war has effectively shut the Strait of Hormuz, cutting exports from Saudi Arabia, the UAE, Kuwait, and Iraq, while Russia cannot increase output due to Western sanctions and infrastructure damage from the war with Ukraine.
- A record supply disruption has removed 12 to 15 million barrels per day, or up to 15% of global supply, causing crude prices to soar to a four-year high of $120 a barrel.
- Consultancy Energy Aspects called the increase "academic" as long as the Strait of Hormuz remains disrupted, noting the move would only signal readiness to raise output once the route reopens.
- JPMorgan warned on Thursday that oil prices could spike above $150 if flows remain disrupted into mid-May, while West Texas Intermediate crude futures jumped 11% to $111.54 per barrel on Friday.
85 Articles
85 Articles
OPEC+ to lift oil output slightly as war risks tighten global market
Eight key members of the OPEC+ alliance agreed Sunday to an increase in oil production next month while warning that war-related disruptions and attacks on energy infrastructure are escalating price swings in global markets. Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman said they would raise output by a combined 206,000 barrels per day starting in May. The decision came after the group held a virtual …
The OPEC+ alliance, led by Saudi Arabia and Russia, has agreed this Sunday to increase its oil production by 206,000 barrels per day as of 1 May, a symbolic step as the implementation of the increase will not be possible as long as the war continues in Iran and the Strait of Hormuz is blocked.The decision has been taken in a teleconference by the Ministers of Energy and Oil of Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhs…
OPEC+, which includes Saudi Arabia, Russia and many Gulf countries, which are being hit by Iran, decided "to adjust its production by 206,000 barrels per day"
OPEP+ member countries have agreed to increase production, which will be irrelevant while the Ormuz Desert is closed, warn analysts.
OPEC Debates Theoretical Oil Output Hike amid Iran war Paralysis ...
Coverage Details
Bias Distribution
- 38% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
