OPEC+ to raise oil output slightly even as U.S.-Israel strikes on Iran disrupt shipments

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OPEC+ has agreed in principle to a modest oil output increase on Sunday, five OPEC+ sources said, after the U.S.-Israeli strikes on OPEC+ member Iran and Tehran’s retaliation led to shipment disruptions in the Middle East.

OPEC+ has a history of raising oil output to cushion disruptions, but analysts said the group currently has little spare capacity to add to supply, except for its leader, Saudi Arabia, and the United Arab Emirates, who will also struggle to export oil until navigation in the Gulf returns to normal.

Riyadh has been raising oil production and exports in recent weeks in preparation for U.S. strikes on Iran, sources have told Reuters.

Oil, gas and other shipments from the Middle East via the Strait of Hormuz have come to a halt since Saturday after shipowners received a warning from Iran saying the area was closed for navigation.