OPEC+ could consider raising oil output more than previously planned when key producers meet on Sunday, as Gulf exporters move to cushion markets from potential supply disruptions after US-Israeli strikes on Iran, Reuters reported, citing two sources close to the talks.Eight members of the oil alliance — Saudi Arabia, Russia, the UAE, Kazakhstan, Kuwait, Iraq, Algeria and Oman — are scheduled to meet at 1100 GMT to review production levels amid heightened geopolitical uncertainty.Earlier, delegates had indicated that the group was likely to approve a modest increase of 137,000 barrels per day for April. The proposed hike was aimed at preparing for stronger summer demand, particularly from the US driving season, and would mark the end of a three-month pause in output increases.However, following the strikes on Iran, the possibility of a larger increase is now being discussed, though the size of any additional hike has not yet been determined, one of the sources said. Both sources declined to be identified.Bloomberg News earlier reported that OPEC+ would consider a bigger hike, citing a delegate.
Prices climb despite oversupply concerns
Despite earlier expectations that oversupply could pressure prices, crude has rallied this year as markets priced in the risk that a conflict between Iran and the US could disrupt Middle East shipments through the Strait of Hormuz. Oil hit $73 a barrel on Friday, its highest level since July.
Gulf exporters already boosting shipments
Market signals suggest that some producers have already stepped up exports in anticipation of possible supply disruption. Trade sources told Reuters that Abu Dhabi is set to export higher volumes of its flagship Murban crude in April.Saudi Arabia has also increased production and exports as part of contingency planning linked to concerns that escalating tensions could affect regional oil flows, sources told Reuters earlier this week.The eight OPEC+ members had previously raised production quotas by about 2.9 million barrels per day from April through December 2025 — roughly 3 per cent of global demand — before pausing further increases for January to March 2026 due to seasonal weakness.The outcome of Sunday’s meeting is expected to signal how the alliance balances geopolitical risk with supply management as global oil markets remain on edge.
