Eight states that are members of the Organisation of Petroleum Exporting Countries (OPEC) and coordinate policy with it will increase its production in April due to disruption of oil supplies amid fighting in Iran. The OPEC website said after the meeting on 1 March.
“The eight member countries cancelled additional voluntary restrictions on 1.65 million barrels per day announced in April 2023 and agreed to increase production by 206,000 barrels per day,” the report said.
Over the past two days, ships carrying oil have largely avoided the Strait of Hormuz, a critical transport hub through which about a fifth of the world’s oil production passes.
So Saudi Arabia, Russian Federation, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman have agreed to raise production.
Brent crude prices rose to a seven-month high of $73 a barrel in trading on 27 February, ending hours before the start of the US and Israeli operation against Iran. Analysts believe that against the background of the blocking of the Strait of Hormuz, oil prices may reach $100 per barrel.