Eight core members of the OPEC+ have raised alarms over disruptions to global oil supply following attacks on energy infrastructure linked to Iran and the ongoing blockade of the Strait of Hormuz.
In a joint statement after a virtual meeting, the group stressed that restoring damaged energy assets is costly and time-consuming, creating significant constraints on supply availability.
They also highlighted the critical importance of protecting international maritime routes, particularly the Strait of Hormuz, which handles around 20 per cent of global oil trade.
The OPEC+ countries—Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman—announced a planned increase in oil production of 206,000 barrels per day for May.
Analysts say the move is largely symbolic, as the market is grappling with a supply bottleneck rather than a production shortage.
Carsten Fritsch of Commerzbank noted that most of the available oil is flowing to Asia, particularly China, Japan, and South Korea. “Asia is currently sucking everything up like a vacuum cleaner,” he said.
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Meanwhile, U.S. President Donald Trump has urged countries facing shortages to source oil from the United States. However, the effect on global prices remains uncertain due to continued geopolitical risks.
According to the International Energy Agency, Gulf producers have cut output by at least 10 million barrels per day—about 10 per cent of global demand—citing storage limitations for oil unable to pass through the blocked Strait of Hormuz.
The developments underscore growing tension in global energy markets, highlighting the vulnerability of supply chains amid ongoing Middle East conflicts.
