OPEC+ Plans Output Increase Despite Market Disruptions

OPEC+ countries are expected to agree on a modest increase in oil production of about 188,000 barrels per day in June, according to sources. This would mark the third consecutive monthly rise, although its immediate impact is likely to be limited due to the ongoing conflict between the United States and Iran.

The war and the closure of the Strait of Hormuz have significantly disrupted oil exports from Gulf producers including Saudi Arabia, Iraq and Kuwait. The planned increase is therefore seen largely as a signal of the market’s readiness to respond once the conflict subsides. Analysts say it could take weeks or months for supply flows to normalize.

Market tensions have pushed oil prices above $125 a barrel, the highest level in four years. Analysts also warn of potential fuel shortages and rising inflation.

OPEC+ is seeking to maintain market stability amid these pressures, despite the departure of the United Arab Emirates from the group.

(reuters, sab)