OPEC + warns that the global oil market will recover slowly after the Iran war

The influential oil-exporting country organization also announced at the same time an increase to production quotas, and the move is essentially symbolic.

Composed of countries including Saudi Arabia, Iraq, and Kuwait, OPEC+ and its eight member states said on Sunday that they are deeply concerned about the impact of the war with Iran on global oil supplies and regional energy infrastructure.

The group also announced that next month, its oil production quotas will be increased by 206,000 barrels per day. However, this move is basically only symbolic, because Iran in fact has blocked the Strait of Hormuz, preventing its crude oil from being shipped to international markets.

“The Commission emphasizes that any act that disrupts energy supply security—whether attacks on infrastructure or impediments to international shipping routes—will intensify market volatility.” The organization said in its statement, adding that “restoring damaged energy assets to full production is costly and takes a long time.”

President Trump warned Iran on Sunday that unless it takes steps to open the Strait of Hormuz, it will face more severe blows. This key shipping channel has become a central focus of the war. In a sharply worded post, Trump ordered Iran to open the strait, “or else you will be living in hell,” and said Tuesday will be “power-plant day, bridge day,” with “a reckoning across the board.”

Affected by severe shipping restrictions, OPEC+ and multiple major oil-producing countries have sharply cut oil production.

The International Energy Agency said that, as of mid-March, Persian Gulf countries have shut in about 10 million barrels of crude oil per day, roughly 10% of global supply. The agency predicts that as the conflict continues, the scale of production cuts will expand further.

Since February 28, when the U.S. and Israel launched the war, as of Thursday, international oil prices have risen by about 50% in total, reaching $109 per barrel.

The eight OPEC+ countries that took part in the Sunday resolution are: Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.

 Sina partners with a major platform—futures account opening: safe, fast, and guaranteed

Endless information and precise analysis are all on the Sina Finance app

Editor: Guo Mingyu