OPEC+ Considers Oil Output Boost
OPEC+ is considering a significant increase in oil output to stabilize global markets rattled by the conflict in Iran. The move aims to compensate for anticipated disruptions to Iranian supplies. Saudi Arabia and the UAE have already begun to increase exports to cushion the economic shock.
The group of eight OPEC+ members, which includes Saudi Arabia and Russia, will boost output by 206,000 barrels per day starting in April. This increase is a reversal from the first quarter of 2026, when the alliance paused production hikes due to seasonal demand weakness. The decision was reached after debating options that ranged from a smaller 137,000 bpd increase to a more aggressive 548,000 bpd. In a preemptive move, Saudi Arabia had already increased its crude oil shipments to 7.3 million barrels per day in February, the highest level since April 2023. This represents a surge of more than 400,000 barrels per day compared to January's figures. This action mirrors a similar strategy from June 2025, when the kingdom raised exports by about half a million barrels per day during previous regional tensions. The United Arab Emirates, another key producer with spare capacity, has also been pumping near-record levels. In January 2026, the UAE's oil output rose to 3.39 million barrels per day. Combined exports from Iraq, Kuwait, and the UAE were set to climb by almost 600,000 barrels a day in February compared to the previous month. These moves come as Iran's own exports show volatility ahead of potential disruptions. After falling to below 1.39 million barrels per day in January, a 26% year-over-year drop, Iranian crude and condensate exports rebounded to 2.2 million barrels per day in February. Iran's ability to maintain these levels is a key variable for global supply, with a significant portion of its shipments historically directed towards China.
