OPEC+ Raises Output Quotas Amid Ongoing Strait of Hormuz Disruptions
OPEC+ members agreed to increase oil production quotas by 206,000 barrels per day in May, but this move is largely symbolic due to disruptions caused by the US-Iran war.
The war has closed the Strait of Hormuz, a critical oil shipping route, since February, resulting in the worst ever oil supply disruption. The increase represents less than 2% of the disrupted supply and is seen as 'academic' by some analysts until the waterway reopens.
OPEC+ members are unable to raise production due to Western sanctions and damage to infrastructure inflicted during the war with Ukraine, as well as missile and drone attacks in the Gulf region. Several Gulf officials have said it would take months to resume normal operations even if the war stopped and Hormuz reopened immediately.