OPEC+ Eyes Output Boost Amid Rising Tensions and Summer Demand Surge

OPEC+ is contemplating a production increase of 137,000 barrels per day for April, ending a recent halt in output growth, according to insiders. This move aligns with preparations for peak summer demand and addressing soaring prices amid geopolitical tensions involving the U.S. and Iran.

Among the essential players in this decision are Saudi Arabia and the UAE, who see an opportunity to regain market share as other OPEC+ members, particularly Russia and Iran, deal with sanctions and Kazakhstan addresses production challenges. An important meeting of eight producers is scheduled for March 1.

Moreover, Saudi Arabia has launched a contingency plan to boost oil output and exports should a U.S. strike on Iran disrupt Middle Eastern oil flows. Despite these serious discussions, neither OPEC nor the governing bodies in Russia and Saudi Arabia have commented as of yet.