Opec+: 206,000 barrels/day more crude oil production needed from May
Oil prices were shaken by five weeks of conflict, rising to almost $120 per barrel in March
The eight major oil producing countries have agreed to increase production quotas by 206,000 barrels per day starting in May, according to a source with knowledge of the facts. This was reported by Bloomberg and Interfax, among others, citing Opec+ sources. According to what had already been leaked before the meeting, the decided increase is likely to remain on paper since the war in Iran and the blockade of the Strait of Hormuz have cut off exports from Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq: the only ones that could significantly increase output.
Brent to the stars
Oil prices have been rocked by five weeks of conflict, rising to nearly $120 a barrel last month, and rising costs for products such as jet fuel and diesel threaten a new wave of inflation. Brent futures hovered around $109 on Friday after US President Donald Trump promised an escalation of the conflict, which could prolong disruptions to energy flows through the vital Strait of Hormuz.
Before the outbreak of the conflict, eight major nations of the Organisation of Petroleum Exporting Countries and their partners had gradually restored the interrupted supply in 2023. They had kept production stable for the first three months of the year, then on 1 March - a day after the first US and Israeli attacks on Iran - agreed on a small increase of 206,000 barrels per day for April.
Opec+ itself, in the statement of the ministerial committee meeting today, says that "any action that undermines the security of energy supply, whether through attacks on infrastructure or the disruption of international sea lanes, increases market volatility and weakens collective efforts to sustain stability". It is "crucial to ensure the security of international sea lanes to ensure an uninterrupted flow of energy," he says.
Increased output but likely to be only theoretical
Opec+ could approve an increase in oil production at its video conference meeting this afternoon (yesterday afternoon, ndr) but this increase could remain largely theoretical as the major producers are unable to increase output due to the war in Iran
