OPEC+ increases oil production limits. Experts: This is a change only on paper

Saudi Arabia, Russia and five other OPEC+ countries on Sunday increased oil production limits for June as part of “cooperation for oil market stability.” In the statement issued on this matter, the organization did not refer to the departure of the United Arab Emirates from its ranks.

The daily limit has been increased by 188,000. barrels. Reuters emphasized that production growth will remain largely on paper, as long as the war in the Middle East prevents the transport of raw materials through the Strait of Hormuz.

In a joint statement by seven OPEC+ countries – Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman – there was no mention of the UAE leaving the organization on May 1which criticized other Arab countries for their passivity in the face of Iranian airstrikes during the war between Israel and the US against Iran, which has been ongoing since February 28.

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The countries of the Persian Gulf region have serious difficulties in exporting raw materials through the Strait of Hormuz, which was used to transport approximately 20% of the crude oil before the war. world crude oil and liquefied natural gas.

US forces are blocking Iran's ports, which has brought the country's foreign trade by sea to a standstill. At the same time, Iran is effectively blocking Hormuz, which in turn has caused paralysis of trade in oil extracted in the Persian Gulf countries.

As a result of the blockade that has lasted for two months, the prices of raw materials have been systematically rising, and airlines are increasingly concerned about possible transport difficulties caused by prices and shortages of aviation fuel. On Thursday, the price of oil reached its highest level in four years on global markets. (PAP)

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