Sources say that OPEC+ may consider further increasing oil production

According to Reuters on April 2, two OPEC+ sources said that the organization’s eight core members may discuss further oil production increases at a Sunday meeting to prepare for the closure of the Strait of Hormuz due to the US-Iran conflict.

Earlier, on March 1, OPEC+ decided to modestly increase output by 206k barrels per day in April, maintaining stable production in the previous quarter to prevent oversupply. Now, the war has triggered the largest oil supply disruption in history, with Saudi Arabia, Iraq, Kuwait, and the UAE reducing output due to the Strait closure, which accounts for over 20% of global oil shipments. International oil prices have risen to nearly $120 per barrel, and Russia’s capacity has also been affected by drone attacks.

Although there are no signs of the Strait reopening, one source said that the proposed increase would not have an immediate impact on supply but signals the ability to quickly ramp up production in the future, stating “a response on paper is at least needed.” Saudi Arabia and Russia did not immediately respond to requests for comment.