Will OPEC+ save the situation? OPEC+ increases production, but markets are shaking

The Organization of the Petroleum Exporting Countries (OPEC) and the countries cooperating with it initially agreed on Sunday to increase crude oil production to 206,000 from April 1. barrels per day – Reuters reported. Analysts expect that oil prices will increase due to the attack on Iran.

During Sunday's meeting in Geneva, eight of the 12 OPEC countries, as well as the countries cooperating with the cartel that make up OPEC+, tentatively agreed to increase daily global crude oil production to 206,000 from April 1. barrels per day from the current slightly over 86,000.

Reuters emphasized that in recent days, in anticipation of the American-Israeli strike on Iran, Saudi Arabia has increased its production and export of crude oil. It was also emphasized that, in the opinion of most experts, apart from Saudi Arabia and the United Arab Emirates, OPEC+ countries currently have small reserves that could increase supply.

The agency also cited the opinions of experts who emphasize that increasing extraction and production does not necessarily prevent an increase in oil prices until shipping in the Persian Gulf returns to normal.

On Sunday, the price of Brent crude oil increased by 10%. to about $80 per barrel. According to most experts, in the coming days, perhaps as early as Monday, its value may even be close to $100.

Reuters quotes Ajay Parmar, director of energy and refining at the Independent Commodity Intelligence Services (ICIS) as saying that “while the military attacks themselves are contributing to the rise in oil prices, the key factor is the closure of the Strait of Hormuz.”

“We expect prices (after the weekend) to be much closer to $100 a barrel, and possibly above that level if the strait closure continues,” Parmar said. Analysts from RBC and Barclys banks quoted by Reuters also believe that the price of oil will exceed $100 per barrel.

The agency also cited the opinion of Rystad energy economist Jorge Leon, who stated that closing the Strait of Hormuz would result in “a loss of 8 to 10 million barrels per day of crude oil supplies, even after redirecting part of the raw material through the pipelines of Saudi Arabia and the emirate of Abu Dhabi in the United Arab Emirates.”

It is estimated that most tanker owners, transport companies and raw materials concerns have already stopped the transport of crude oil, fuels and liquefied natural gas through the Strait of Hormuz, through which approximately 20 percent of the total volume is transported. crude oil.(PAP)

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