OPEC+ increases oil production

Saudi Arabiala Russiaand six other members ofOpec+they decided to increase the againoil production quotaswarning that the restoration ofenergy plants damaged by war in the Middle Eastit is “expensive” and will take “a long time.” For the second consecutive month, theVienna sign(which includes several Gulf countries that have been targeted byIranian air strikes) agreed “to implement a production adjustment” of206,000 barrels per daystarting from the month of May. This move is the same as the one decided on1st Marchwhen the eight countries – Algeria, Saudi Arabia, the United Arab Emirates, Iraq, Kazakhstan, Kuwait, Oman and Russia – increased theiroil production quotasof 206,000 barrels per day for the month of April.

But OPEC+ warned that the repair ofenergy plants damaged by warit is “expensive” and will take “a long time”, which could aggravate thedifficulties in global oil supply. The organization also highlighted “the crucial importance ofprotection of international sea routesin order to ensure the uninterrupted circulation of energy”. The statement does not directly mention thewar with Iranbut the conflict, which shocked theworld energy marketsand caused aprice surgeclearly influenced this decision.

Il crucial point of the conflictthe passage remains for theStrait of Hormuzconsidered strategic forworld oil supplythrough which, before the conflict, about a fifth of thepetrolium e del liquefied natural gas (LNG)world. Shortly before theTrump’s ultimatumtoday, the Vienna organization had made it known that “any action that compromises thesecurity of energy supplybe it attacks on infrastructure or disruption ofinternational sea routesincreases themarket volatility” and complicates the task of OPEC+ inworld price management. The cartel also praised the members they managed to findalternative export routescontributing, according to them, “to reducing themarket volatility“.

Last Thursday – last day before the Easter long weekend break – icrude oil pricesthey had skyrocketed again after the American president’s statementsDonald Trumpwhich threatened Iran with a return to the “Stone Age.” TheWTIhad earned the11.41% to 111.54 dollars. Il Brentinstead it had risen by7.78% to 109.03 dollars. Il February 27just before the start of theIsraeli-American operationprices were respectively 67.02 and 72.48 dollars, already at the highest levels in the last seven months due to fears of conflict.

7.78% to 109.03 dollars. On February 27, just before the start of the Israeli-American operation, prices were respectively 67.02 and 72.48 dollars, already at the highest levels of the last seven months due to fears of conflict.