OPEC+ Holds Production Steady Amid Middle East Tensions
Crude oil prices remained stable near $91 per barrel on Monday, as investors closely watched the escalating tensions in the Middle East. Saudi-backed forces in Yemen launched a major military operation to reclaim areas controlled by the Houthis, an Iran-backed group. The Houthis had recently taken over the Bab el-Mandeb, a critical shipping lane between the Red Sea and the Gulf of Aden, disrupting Saudi Arabia's oil export route.
Amid these geopolitical risks, OPEC+ members decided over the weekend to keep oil production quotas unchanged for the next month. The decision comes as oil prices have been rising, nearing $100 per barrel, and diesel prices have hit record highs. The G7 nations have responded by releasing emergency oil reserves to ease the impact of the ongoing conflict.