OPEC+ has agreed to raise daily oil production quotas slightly as the world grapples with a severe supply shortage stemming from the Iran war.
Eight countries in the major oil bloc committed to a quota hike of 206,000 barrels per day, split among them. Those are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.
The hike, set to take effect in May, will see increases for both Saudi Arabia and Russia at 62,000 barrels per day. Iraq will increase by 26,000 barrels per day, the UAE’s by 18,000, and Kuwait’s by 16,000. The other three see increases below 10,000 barrels per day.
While the move by OPEC+ could help increase global supply, the actual implementation date falls when hostilities in the Middle East are likely to cease.
President Donald Trump has recently said the war will be over in two to three weeks, putting an end date in mid-April.
Many OPEC+ countries have also been affected by Iran’s chokehold on the Strait of Hormuz, which has roiled the oil trade and slowed global shipping to a trickle.
The Hormuz bottleneck is showing some signs of easing, with vessels from so-called brotherly nations and some Asian countries passing through.
But Iran is digging in on its de facto control over the strait, slapping a $2 million toll on vessels transiting the waterway and banning certain countries indefinitely.
IRAN VOWS TO CONTINUE STRAIT OF HORMUZ CHOKEHOLD IN FACE OF FIERY TRUMP THREATS
Trump, meanwhile, is looking to end the stranglehold once and for all.
His deadline for Iran to reopen the strait is Tuesday night. If Iran doesn’t comply, Trump has said he will bomb its power plants and bridges.
