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Published on 06/04/2026 – 9:46 GMT+2•Updated
9:56

OPEC+ members met virtually on Sunday and afterwards announced plans to hike crude quotas by 206,000 barrels per day (bpd) in May as the Strait of Hormuz, which is the world’s most important route for black gold, continues to face disruptions as a result of the US-Iran conflict.

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However, the modest rise agreed by the eight key producing countries — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — is not likely to bring down oil prices as it represents less than 2% of the supply disrupted by the Hormuz closure. Moreover, the increase is more symbolic than material as the oil can’t be exported until the Strait of Hormuz opens.

“In their collective commitment to support oil market stability, the eight participating countries decided to implement a production adjustment of 206 thousand barrels per day from the 1.65 million barrels per day additional voluntary adjustments announced in April 2023. This adjustment will be implemented in May 2026,” the group said in a statement.

The members’ statement also noted that the 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner.

“The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023,” the statement also said.

Efforts to stabilise soaring oil prices

The latest statement from OPEC+ comes as oil prices have surged since the Iran conflict began, with Brent and US crude nearing $120 a barrel, driving up fuel costs and putting pressure on consumers and businesses worldwide.

Meanwhile, J.P. Morgan said in a note on Thursday that oil prices could go as high as $150 a barrel if supply flows remain disrupted until mid-May.

US President Donald Trump has given Iran a deadline of Tuesday to open the Strait of Hormuz and has vowed to hit the country’s power plants and bridges otherwise.

European markets were closed on Monday for the Easter holiday.

The rise is largely symbolic as some key members are unable to raise ​production amid the US-Israel war on Iran.

The Organization of the Petroleum Exporting Countries (OPEC) has agreed to increase oil output quotas by 206,000 barrels per day for May, a rise that is largely symbolic as some of its key members are unable to raise production due to the US-Israeli war on Iran.

The war has effectively blocked the Strait of Hormuz – the world’s most important oil route – since the end of ⁠February and cut exports from OPEC+ members Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Iraq.

In a statement on Sunday, eight members of OPEC+, including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, agreed to increase May quotas during a virtual meeting.

“The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability,” the statement read.

“The eight countries also expressed concern regarding attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability,” it added.

While the quota increase represents less than two percent of the supply disrupted by the closure of the strait, OPEC+ sources told the Reuters news agency that the pledge had signalled readiness to raise output once the waterway reopens.

Crude prices have surged to a four-year high amid the war, close to $120 a barrel, leading to higher prices for transport fuels.

On Thursday, JPMorgan said oil prices could spike above $150, an all-time high, if oil flows through the Strait of Hormuz remain disrupted into mid-May.

May’s increase is the same as the eight members had agreed on for April at their last meeting on March 1. But amid the war, oil supply disruption on record is estimated to have removed as much as 12 to 15 million bpd or up to 15 percent of global supply.

With the strait still closed, Iran has allowed some countries in the region to use the waterway.

Iran has said Iraq was exempt from any transit restrictions through the strait, with shipping data on Sunday showing a tanker loaded with Iraqi crude passing through the waterway.

Oman’s Foreign Ministry announced on Sunday that deputy foreign minister-level talks were being held with Iran to discuss ⁠⁠options to ensure the smooth transit of vessels through the Strait ‌‌of Hormuz.

US President Donald Trump threatened to escalate attacks and target Iranian civilian infrastructure, including bridges and power plants, if the Strait of Hormuz is not reopened by Monday.

March 18 (Asia Today) — South Korea’s four major oil refiners are ramping up production and delaying maintenance to stabilize domestic fuel supply amid rising global energy risks, industry officials said Tuesday.

The move comes as refining margins approach $30 per barrel, far above the industry break-even level of about $4 to $5, signaling what analysts describe as a “super cycle.”

Despite strong profitability, refiners said the decision reflects a priority on supply stability as concerns grow over potential fuel shortages linked to Middle East tensions and disruptions in the Strait of Hormuz.

GS Caltex has postponed major maintenance at its Yeosu refinery by about two months to May, opting to keep production running during the current high-margin period. Such maintenance typically lasts about 40 days and costs hundreds of billions of won.

Industry officials said the delay was driven not only by profitability but also by the need to ensure stable supply, including naphtha, a key feedstock for petrochemical production.

Naphtha prices have surged to about $1,009 per ton, roughly double the level seen a year earlier.

Refiners said maintaining high operating rates will also support petrochemical companies by ensuring a steady supply of raw materials.

SK Energy said it will continue operating at full capacity while complying with the government’s oil price cap policy. Authorities are monitoring refinery inventories and shipments in real time through a joint task force.

S-Oil and HD Hyundai Oilbank are also prioritizing domestic supply in line with government measures limiting exports of gasoline and diesel.

Industry sources said other refiners may follow GS Caltex in adjusting maintenance schedules, as shutting down facilities during a period of elevated margins would reduce efficiency.

Analysts said refiners are seeking to balance strong earnings with their role in preventing a domestic fuel crisis as geopolitical tensions persist.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260317010005107

March 17 (Asia Today) — This commentary is the Asia Today Editor’s Op-Ed.

South Korea’s ruling Democratic Party and the government have decided to raise the operating rates of nuclear and coal-fired power plants to respond to rising oil prices triggered by the war in the Middle East, a move critics say marks a late reversal of the party’s long-standing opposition to nuclear energy.

Ahn Do-geol, secretary of the party’s economic task force on the Middle East crisis, said Monday the government will expand electricity generation from nuclear and coal plants to manage supplies of liquefied natural gas, or LNG, which has relatively limited reserves.

Under the plan, the government will lift a cap limiting coal-fired power generation to 80% of installed capacity and accelerate repairs on six nuclear reactors currently under maintenance. Two reactors are expected to return to service by the end of this month and four more by May, raising nuclear utilization rates from the current high-60% range to about 80%.

The decision signals a clear shift for the Democratic Party, which long supported a phase-out of nuclear energy.

Former President Moon Jae-in formally declared a nuclear phase-out policy in 2017, pledging to abandon nuclear-centered electricity generation after attending a ceremony marking the permanent shutdown of the Kori Unit 1 reactor.

At the time, Moon argued South Korea should move toward a nuclear-free era and halted or scrapped most plans to build new nuclear plants.

The party’s stance began to soften after the outbreak of the Russia-Ukraine war in 2022, which triggered global energy supply disruptions. Near the end of his presidency, Moon said nuclear power would need to remain a major baseload energy source for decades and called for delayed reactors including Shin Hanul Units 1 and 2 and Shin Kori Units 5 and 6 to begin operations as soon as possible.

The latest shift reflects renewed energy concerns linked to instability in the Middle East, which has pushed oil prices higher.

Supporters of nuclear power argue it remains a critical energy source despite safety risks highlighted by past disasters such as the Fukushima accident in Japan.

Opponents warn that nuclear accidents can cause catastrophic damage, pointing to the Zaporizhzhia nuclear plant in Ukraine, which has faced repeated safety concerns amid the ongoing war.

However, critics of the phase-out policy argue that abandoning nuclear energy without reliable alternatives risks creating energy shortages.

South Korea currently has only about nine days’ worth of LNG reserves, raising concerns about energy security during geopolitical crises.

Supporters of the policy shift say governments must adjust energy strategies as global conditions change but argue that long-term policies on energy and food security should be developed with careful planning rather than reactive decisions.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260316010004672