OPEC+ raises output slightly as oil prices surge amid regional tensions

ISLAMABAD: OPEC+ has agreed to increase its oil production quota by 260,000 barrels per day for May.

The eight OPEC+ member countries, participating in a virtual meeting, approved the increase and said they would continue to monitor the market and maintain stability.

On the other hand, due to tensions in the region, the Strait of Hormuz has been practically closed, as a result of which oil exports of many countries, including Saudi Arabia and the United Arab Emirates, are being affected.

Crude oil prices in the global market have risen to about $120 per barrel, which is the highest level in the last four years. According to Al Jazeera, due to the ongoing war, it is not possible for many countries to significantly increase production, so this increase is mostly symbolic.

Meanwhile, JP Morgan has warned that if the disruption in supply continues until mid-May, oil prices could exceed $150 per barrel, which is likely to put further pressure on the global economy.