OPEC to add 206,000 bpd after Strait of Hormuz reopens
Business
OPEC is set to bump up oil production by 206,000 barrels a day in May, but only after the Strait of Hormuz, a crucial route for global oil, reopens.
This move comes as recent tensions between the US Israel, and Iran have pushed prices to nearly $120 per barrel and disrupted supplies since February.
Strait blockade hits Saudi Arabia
The blockade at the Strait has hit big producers like Saudi Arabia hard, with the planned increase covering less than 2% of what's been lost.
Ongoing conflict has damaged infrastructure and sanctions on Russia aren't helping either.
If things don't improve soon, up to 15% of global oil could stay stuck and prices might spike past $150 per barrel, so everyone's watching what happens next.