The Organisation of the Petroleum Exporting Countries Plus (OPEC+) alliance on Sunday agreed to raise oil production by 206,000 barrels per day (bpd) from April, amidst the ongoing US-Israel military actions against Iran.
The decision was reached on Sunday, a day after US-Israel unleashed unprecedented attacks on Iran.
|
|
Only eight members of the alliance met, Reuters reported.
The member countries at the meeting were listed as Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria, and Oman.
|
|
|---|
These eight core members have made most of the production adjustments in recent years.
The producer group, formally known as OPEC+, said in a statement that the increase represents less than 0.2 per cent of global oil supply.
The decision comes at a time when the escalating U.S.-Israeli war on Iran and Tehran’s retaliation have disrupted crude flows from key producers in the Middle East. The ongoing conflict has forced countries to halt shipments through the Strait of Hormuz. Brent crude rose by 3.66 per cent to trade at about $73 per barrel on Saturday.
About 20 million barrels of crude oil and other fuel types pass daily through the narrow waterway between Iran and the Arabian Peninsula.
The Strait is vital for exports from Saudi Arabia, Iraq, Kuwait, Qatar and Iran. Any disruption — or even the threat of one — typically triggers sharp spikes in oil prices and shipping insurance costs.
Although Saudi Arabia and the United Arab Emirates operate alternative pipelines that bypass the strait, analysts note that these routes cannot fully accommodate the total volume of crude that usually transits the corridor.
ALSO READ: Again, Nigeria’s oil production exceeds OPEC quota
It was reported that the producer group had earlier agreed to raise output quotas by about 2.9 million bpd from April through December 2025 — roughly 3 per cent of global demand — before pausing further increases for January to March 2026 due to seasonal weakness.
Analysts say the latest modest hike underscores the delicate balancing act facing OPEC+ as it attempts to stabilise global markets amid one of the most volatile geopolitical crises in recent years.
According to Reuters, five sources familiar with Sunday’s meeting said OPEC+ had debated output increases ranging from 137,000 bpd to 548,000 bpd before settling on a 206,000 bpd increase.
![Troops of the Nigerian Army. [PHOTO CREDIT: Official Twitter handle of the Nigerian Army @HQNigerianArmy]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2020/07/1500x500.jpg?fit=888%2C499&ssl=1)
