The eight major oil-producing countries (Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Nigeria, Algeria, and Venezuela) have agreed to increase their production quotas by 206,000 barrels per day starting in May , according to a source familiar with the situation. Bloomberg and Interfax, among others, reported, citing OPEC+ sources.
According to what had already leaked before the meeting, the decided increase risks remaining on paper given that the war in Iran and the blockade of the Strait of Hormuz have interrupted exports from Saudi Arabia, the United Arab Emirates, Kuwait and Iraq : the only countries that could significantly increase output.
The OPEC+ countries, meeting via videoconference, stressed "the crucial importance of safeguarding international shipping lanes to ensure the uninterrupted flow of energy" and expressed "concern about attacks on energy infrastructure, noting that restoring damaged facilities to full capacity is costly and time-consuming, with consequent repercussions on the overall availability of supply."
Accordingly, the Committee emphasized that any action that compromises the security of energy supply, whether through attacks on infrastructure or the disruption of international shipping lanes, increases market volatility and undermines the collective efforts intended to support market stability for the benefit of producers, consumers, and the global economy.
(Unioneonline)
