OPEC+ increases oil production after attacks on Iran and the region

Eight countries that are part of OPEC+ announced this Sunday (1st) that they will increase oil production. The decision was announced at the same time that US and Israeli forces attacked Iran, which reacted with offensives against Israel and American military bases in the Gulf. The confrontation affected oil transport in the region. 🗒️ Do you have any reporting suggestions? Send to g1 The Organization of Petroleum Exporting Countries informed, in a meeting already planned before the start of the war, that production will be increased by 206 thousand barrels per day from April onwards. The volume is higher than expected by analysts. Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman will expand the offer. READ ALSO: Oil rises 10% due to conflict in Iran and could reach US$100 per barrel How the US attack on Iran could affect the dollar, oil and the financial market The attacks hit different points in the region, including two vessels that crossed the Strait of Hormuz, the main route for oil from the Persian Gulf to other countries. Global oil supply Problems in this transition can hamper exports and reduce global supply, which usually puts pressure on oil and gasoline prices. About 15 million barrels per day — approximately 20% of all world production — pass through the Strait of Hormuz, according to Rystad Energy. Ships crossing the strait, north of which Iran is located, transport oil and gas produced by Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran itself. In mid-February, Iran temporarily closed parts of the strait, citing military exercises. New interruptions on this route could reduce the supply of oil on the international market and increase prices even further. “About a fifth of global oil supply passes through the Strait of Hormuz, a vital artery for world trade, which means the market is more concerned about the actual circulation of barrels than the capacity available on paper,” said Jorge León, senior vice president and head of geopolitical analysis at Rystad. “If flows through the Gulf are limited, additional production will provide limited immediate relief, making access to export routes much more important than formal production targets.” Iran exports around 1.6 million barrels a day, mainly to China. If these sales are affected, the Asian country could look for other suppliers, which could also put pressure on energy prices. Experts estimate that oil prices could rise sharply when negotiations resume late Sunday night. Rystad analysts estimate that a barrel of the Brent type, an international reference, could rise by US$20 when the market opens. On Friday, Brent closed at US$72.87, the highest value in seven months. Arthuro Paganini Oil Exploration

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