OPEC+ UPS OUTPUT WITHOUT MENTIONING ATTACK ON IRAN

VIENNA, March 1 (Bernama-dpa) — Eight countries forming the core of the OPEC+ group of oil producers plan to increase production from April more than expected by analysts, the group announced on Sunday following an online meeting, reported German Press Agency (dpa).

Daily production is to rise by 206,000 barrels per day, they indicated. They did not mention current hostilities in the Middle East.

The increase was justified on the basis of a stable global economic outlook and low inventories.

Commerzbank analysts had expected an increase of around 137,000 barrels after an announcement by the eight countries — Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman — in December.

Global oil production came in at 106.6 million barrels per day at the start of the year, according to the International Energy Agency (IEA).

Crude deliveries from Iran could cease as a result of attacks by Israel and the United States, but conditions in the Strait of Hormuz are seen as much more significant. Around a fifth of global oil transports pass through the strait.

An Iranian news agency has reported that Iran's Islamic Revolutionary Guard Corps has restricted passage through the vital waterway, and according to information from Oman, an oil tanker was attacked in the region on Sunday.

While the OPEC+ countries can easily compensate for a production stop in Iran, they do not have sufficient free capacity to make up for complete closure of the strait, according to Commerzbank analysts.

— BERNAMA-DPA