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OPEC+ Moves to Lift Output by 206,000 Barrels a Day in May

A far larger shortfall from the Hormuz shutdown leaves prices near $120 despite the move.

Overview

  • OPEC+, which agreed Sunday to add 206,000 barrels a day starting in May, cast the step as a signal of support for market stability.
  • Eight members will raise output, with Saudi Arabia and Russia each allocated 62,000 barrels a day and smaller shares going to Iraq, the United Arab Emirates, Kuwait, Algeria, Kazakhstan and Oman.
  • Analysts and some group sources say many producers cannot move extra barrels while the Strait of Hormuz stays closed, so much of the increase may remain on paper.
  • The Hormuz choke point usually carries a large share of seaborne oil, and its closure plus recent attacks has cut an estimated 12 to 15 million barrels a day; OPEC+ warned repairs will be long and costly.
  • Crude traded near $120 a barrel as governments and consumers faced higher fuel costs, and the group set its next check‑in for May 3 to review conditions.