Source: Fortune.com
Summary
OPEC+ is considering a larger supply increase when key members meet on Sunday after the US and Israel launched an attack on Iran. The group was expected to resume modest production increases in April, but the recent attacks may lead to a larger increase. Saudi Arabia and other producers have accelerated oil exports in recent days due to rising tensions in the region. The attacks have pushed up crude prices, with futures rising to a seven-month high of $73 a barrel in London. OPEC+ has often adopted a cautious policy in the face of geopolitical events, but may adjust course due to the current situation.
Our Reading
The numbers tell one story. OPEC+ is considering a larger supply increase, but the reality is that the group is walking a thin line between reclaiming market share and responding to geopolitical events. Saudi Arabia has accelerated oil exports, but the kingdom has suffered from regional conflicts before. The current situation is reminiscent of previous events, where OPEC+ has opted to wait and see before acting. The question is, will they adjust course this time?
Author: Evan Null
