OPEC+ member countries are reportedly discussing plans for significantly increased oil production if the Iran-controlled Strait of Hormuz reopens for traffic, according to Swedish media reports. The eight members of the oil alliance are scheduled to meet on Sunday to discuss May production quotas. The closure of the strategic waterway and ongoing conflict in Iran has led major oil-producing countries around the Persian Gulf to drastically reduce their exports of oil and gas.
According to reports from Bloomberg cited in the Swedish press, Saudi Arabia, the United Arab Emirates, and Iraq have reduced oil production by approximately 10 million barrels per day since the war began on February 28. The current oil price has surged to nearly $110 per barrel. If the strait opens for traffic, a theoretical plan for adjusted production rates could send important signals to global markets.