- OPEC+ plans to increase oil production by 188,000 barrels per day after the end of sanctions.
- The participating countries are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman; together, they account for the majority of the world’s oil exports.
- Participants agreed to increase output by 2 million barrels for the next six months.
OPEC+ has an agreement on increasing oil production by 188,000 barrels a day. The agreement was reached after the participants said that the global oil market will be able to withstand the impact of sanctions.
According to OPEC+, the participating countries are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The countries have agreed to increase oil production after the end of sanctions, which will help OPEC+ offset the decline in output caused by sanctions on Russia in 2023.
The material also notes that OPEC+ plans to maintain important oil production levels and to continue to ensure that the global oil market remains stable. The organization said that it will continue to monitor the situation and adjust oil production if necessary.
Participants also said that the next increase in output will be 2 million barrels for the next six months. In particular, according to the material, the price for the Brent benchmark will rise sharply, as the market expects that Iran sanctions will be lifted in the Strait of Hormuz.
Al Jazeera also reports that, regarding the situation in the Strait of Hormuz: 38 tankers are moving 2.1 million barrels per day against 48 1 million barrels per day according to MarineTraffic. For a forecast, it is expected that there will be about 130 ships passing through the Strait of Hormuz in the near future.
Meanwhile, the material says that OPEC+ is reducing production through an “effective cut” in the Strait of Hormuz, which, according to the data, accounts for close to one-fifth of global oil and liquefied natural gas supplies. It also notes that OPEC+ has set a ceiling of 33.13 million bpd against 42.77 million bpd for the total production of OPEC.