Key members of the OPEC+ alliance have agreed to raise oil production quotas by more than market expectations following escalating tensions after US and Israeli strikes on Iran.
The V8 group within the oil-producing alliance - which includes major producers such as Saudi Arabia, Russia and several Gulf states - announced a “production adjustment” of 2,06,000 barrels per day. The increase is set to take effect in April, according to a statement from the group.
The decision came after analysts had projected a smaller output rise of around 1,37,000 barrels per day ahead of the meeting. However, the final figure exceeded those forecasts.
In its statement, the group did not directly reference the ongoing geopolitical conflict or the regional escalation involving Iran. Instead, it cited a “steady global economic outlook and current healthy market fundamentals” as the basis for adjusting supply levels.
Energy market analysts warned that although the output increase could help stabilise prices, it may not be sufficient to offset potential disruptions stemming from heightened regional instability. Concerns remain that Iran could target strategic shipping routes such as the Strait of Hormuz, through which nearly a quarter of global seaborne oil flows pass.
Jorge Leon, an analyst at Rystad Energy, said uncertainty surrounding possible supply disruptions could still push oil prices higher when markets reopen, particularly if tensions escalate further or impact key transit corridors.
Market participants are now closely watching developments to assess potential effects on global energy supply and pricing stability.
.jpg "LPG cylinder price reduced to Tk1,885 in Bangladesh")