OPEC+ Boosts Quotas Amid Hormuz Disruptions, Prices Surge

OPEC+ members agreed to raise oil output quotas by 206,000 barrels per day for May in response to disruptions caused by the US-Israeli war with Iran.

The Strait of Hormuz, a critical global oil route, has been shut down since February, leading to a severe supply disruption and driving up crude prices to four-year highs above $120 a barrel.

A consultancy, Energy Aspects, called the increase 'academic' as long as disruptions in the strait persist, noting that it adds very few barrels to the market. When the Strait of Hormuz is closed, additional barrels from OPEC+ become largely irrelevant, said Jorge Leon, a former OPEC official.

OPEC+ expressed concern about attacks on energy assets during a virtual meeting on Sunday, with one member stating it could take months to resume normal operations and reach production targets even if the war stopped.