OPEC+ Boosts Output Amid Hormuz Disruption to Counter High Prices
It appears OPEC+ has signaled an intention to increase oil production, contingent upon the reopening of the Strait of Hormuz. This announcement comes amidst a backdrop of significant disruptions to global oil traffic, with reports indicating a US-Iran war has largely shut down this vital shipping lane, leading to what’s described as the worst oil supply disruption ever. Despite these concerns, there’s data suggesting at least one tanker carrying Iraqi crude has managed to navigate through the Strait, offering a sliver of hope for resumed activity.
The decision by OPEC+ to consider boosting output is likely driven by the prevailing high oil prices.… Continue reading
Matt Underwood