OPEC+ member nations are planning to increase production quotas for May, a move considered symbolic as the conflict in the Middle East has constrained oil output and transportation from several of the alliance's largest producers.
According to two representatives who spoke on condition of anonymity, major oil-producing countries led by Saudi Arabia and Russia agreed in principle during a video conference held late Sunday to raise the daily production target by approximately 206,000 barrels.
Due to restricted oil supplies from the Persian Gulf resulting from the Iran conflict, major producers such as Saudi Arabia, the UAE, Iraq, and Kuwait have been forced to reduce output, rendering such an increase largely theoretical for the time being. However, this action may signal their intention to restore oil production as swiftly as possible once hostilities subside.
Five weeks of conflict have caused significant volatility in oil prices, which climbed to nearly $120 per barrel last month. Soaring prices for products like jet fuel and diesel also threaten a new wave of inflation. Following US President Trump's vow to escalate the war, Brent crude futures settled near $109 per barrel on Friday, potentially prolonging the disruption of energy shipments through the critical Strait of Hormuz.
Prior to the outbreak of conflict, eight major nations from the Organization of the Petroleum Exporting Countries and its partners had been gradually restoring supplies halted since 2023. After maintaining stable production in the first three months of this year, they agreed on March 1st—the day after the initial US and Israeli strikes on Iran—to implement a modest daily production increase of 206,000 barrels for April.
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