OPEC+ has agreed to a modest, largely symbolic oil output increase of 188,000 barrels per day for June, as the US-Israel war on Iran disrupts Gulf supplies through the Strait of Hormuz.

“In their collective commitment to support oil market stability, the seven participating countries decided to implement a production adjustment of 188 thousand barrels per day,” OPEC+ said in a statement, making no mention of the United Arab Emirates, which quit the body on Friday.

The statement was issued after the seven countries – Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia and Saudi Arabia – met virtually on Sunday to “review global market conditions and outlook.” The move is designed to show the group is ready to raise supplies once the war stops, signaling a business-as-usual approach despite the UAE's departure.

Top OPEC+ producer Saudi Arabia’s quota will rise to 10.291 million barrels per day (bpd) in June under the agreement, far above its actual production of 7.76 million bpd reported in March.

The Iran war, which began on February 28, and the resulting closure of the Strait of Hormuz have throttled exports from OPEC+ members Saudi Arabia, Iraq, Kuwait, and the UAE. Even when shipping reopens, it will take weeks or months for flows to normalize, according to oil executives.

The supply disruption has propelled oil prices to a four-year high of over $125 per barrel, with analysts predicting widespread jet fuel shortages in one to two months and a spike in global inflation. OPEC+ crude output averaged 35.06 million bpd in March, down 7.7 million bpd from February.

Source: www.aljazeera.com