Home / Business and Economy / OPEC+ Eyes Larger Oil Output Hike Amidst Geopolitical Tensions
OPEC+ Eyes Larger Oil Output Hike Amidst Geopolitical Tensions
28 Feb
Summary
- OPEC+ may increase oil output more than planned due to U.S.-Iran conflict.
- Saudi Arabia and UAE have already increased oil exports in anticipation.
- A decision on a potential output increase is expected on Sunday.
OPEC+ is reportedly considering a significant increase in oil production, potentially exceeding initial plans, as geopolitical tensions rise. Sources close to the talks indicate that leading producers, including Saudi Arabia and the UAE, have already increased their oil exports. This move appears to be a contingency measure in anticipation of possible disruptions stemming from the U.S.-Israeli attack on Iran, which occurred on Saturday.
The group of eight OPEC+ members, including Saudi Arabia and Russia, is scheduled to meet on Sunday to discuss output levels. Delegates had previously suggested an agreement on a modest increase of 137,000 barrels per day for April, aiming to meet summer demand. However, the recent developments may lead to a larger hike, which would mark an end to a three-month pause in production increases.
Evidence suggests that major Middle Eastern producers have already ramped up exports. Abu Dhabi is set to export more of its flagship Murban crude in April, while Saudi Arabia has also increased its production and exports as part of a strategic plan. These actions reflect growing concerns over the potential impact of the conflict on global oil supply and prices.
