OPEC Commits to Boost Output Once Hormuz Reopens
Why it matters: The Strait of Hormuz blockade has curtailed over 11 million barrels daily in oil exports from four OPEC nations.
- OPEC agreed to a theoretical boost of 206,000 barrels daily in oil production, contingent on the reopening of the Strait of Hormuz (Oilprice.com).
- Saudi Arabia, Iraq, Kuwait, and the UAE have already curtailed over 11 million barrels daily in oil output due to the Strait of Hormuz blockade (Oilprice.com).
- OPEC's combined oil output losses for March were estimated at 7.2 million barrels daily, reaching the lowest production rate since June 2020 at 21.57 million barrels daily (Reuters, LSEG, Kpler).
- Brent crude was trading at $109.73 per barrel, with West Texas Intermediate at $111.20 per barrel, following President Trump's threat to Iran (Oilprice.com).
- Iranian attacks on infrastructure continued in the UAE, Bahrain, and Kuwait, making the reopening of the Strait of Hormuz unlikely soon (UPI).
OPEC has theoretically agreed to boost oil production by 206,000 barrels daily once the Strait of Hormuz reopens, a move anticipated by reports indicating eight members are ready to quickly add barrels. However, this increase remains constrained by the ongoing U.S.-Israeli war with Iran, which has led to significant output curtailments by Saudi Arabia, Iraq, Kuwait, and the UAE, totaling over 11 million barrels daily.
