Eight OPEC+ member nations are considering a larger-than-expected increase in crude oil production following the full-scale U.S. and Israeli airstrikes on Iran on the 28th (local time), Reuters reported.
OPEC+ delegates had previously indicated they could agree to raise oil output by 137,000 barrels per day in April, ending a three-month production pause. The move was intended to prepare for summer demand increases and respond to rising oil prices driven by the possibility of U.S. attacks on Iran. Sources familiar with the matter said OPEC+ members are scheduled to meet on March 1 and may discuss production increases beyond the original plan.
OPEC+ members had raised their production quotas from April to December last year to approximately 2.9 million barrels per day—about 3% of global demand—before halting additional increases from January through March due to seasonal demand declines. Bloomberg also reported that OPEC+ members will discuss expanding production increases at their meeting on the 29th following the U.S.-Israeli strikes on Iran.
Reuters reported that Saudi Arabia and the UAE have already increased oil production in preparation for possible airstrikes on Iran. A Saudi source said the kingdom raised crude production and exports as part of contingency planning. UAE trade sources also indicated the country plans to increase exports of Murban crude, its flagship oil, starting in April.
According to Bloomberg, oil prices have risen 19% this year despite oversupply concerns, driven by the possibility of U.S. attacks on Iran, production disruptions, and China's crude stockpiling. Brent crude on the London ICE futures exchange reached $73 per barrel on the 27th, hitting a seven-month high.