OPEC+ Agrees to Increase Oil Output from May as Hormuz Remains Closed
OPEC+ has agreed to raise its oil production quotas by 206,000 barrels per day for May, according to a decision taken at a virtual meeting on Sunday.
However, the increase is largely symbolic as the ongoing US-Israeli war with Iran has effectively shut down the Strait of Hormuz — the world’s most critical oil chokepoint — since late February. This has caused the largest oil supply disruption in history, removing an estimated 12 to 15 million barrels per day (up to 15% of global supply).
The modest quota hike signals OPEC+ members’ readiness to boost output once the strait reopens, but sources say it will have little immediate impact on the market due to damaged infrastructure and ongoing conflict.
Crude prices have already surged to a four-year high near $120 per barrel, putting pressure on global fuel costs.
The eight active OPEC+ members (Saudi Arabia, UAE, Kuwait, Iraq, Russia and others) will hold their next meeting on May 3.
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