Vienna: Oil producing countries in the Opec+ alliance are considering a larger increase in oil production after recent strikes on Iran raised fears of supply disruption and rising fuel prices worldwide.
Sources close to the discussions said the group had earlier planned a modest production increase of about 137,000 barrels per day beginning in April. However, the worsening security situation in the Middle East has prompted talks about a bigger output boost to keep global markets stable.
Saudi Arabia and the United Arab Emirates have already raised exports as a precautionary step to reassure buyers and prevent shortages. Energy traders remain concerned that further escalation could affect shipping through the Strait of Hormuz, a vital route for global oil transport.
Iran produces more than three million barrels of oil per day and exports most of it through this narrow waterway. Any disruption there could affect a significant share of the world’s oil supply.
Oil prices climbed to around 72 to 73 dollars per barrel following the tensions, the highest level in several months. Analysts warn prices could rise further if supply routes are threatened, though a possible global surplus later this year may limit long term increases.
Gulf producers appear eager to calm markets by ensuring adequate supply while monitoring the security situation. The upcoming Opec+ meeting is expected to assess market risks and decide whether a larger output increase is necessary.
The developments highlight how geopolitical tensions continue to influence energy markets and fuel costs across the world.