OPEC: Repairing Energy Infrastructure "Costly" and "Time-Consuming"

Middle East – Saudi Arabia, Russia, and six other OPEC+ members decided on Sunday to increase oil production quotas once again, warning that repairing energy infrastructure damaged by the Middle East conflict is "costly" and "time-consuming."

According to a statement, OPEC members—including several Gulf states that have previously suffered Iranian air strikes—agreed for the second consecutive month to "adjust output" starting in May, increasing daily production by 206,000 barrels.

On March 1, eight countries—Algeria, Saudi Arabia, the United Arab Emirates, Iraq, Kazakhstan, Kuwait, Oman, and Russia—had already raised their April oil production quotas by 206,000 barrels per day. However, OPEC cautioned that repairing war-damaged energy facilities is "costly" and "time-consuming," which could further exacerbate global oil supply challenges.

The organization also emphasized that "protecting international shipping lanes is crucial for ensuring uninterrupted energy flows." Although the statement did not directly mention the conflict with Iran, this confrontation has disrupted global energy markets and driven prices upward, clearly influencing the group’s decision.

Before the outbreak of hostilities, approximately one-fifth of the world's oil and liquefied natural gas (LNG) passed through the Strait of Hormuz.

As U.S. President Trump's ultimatum demanding the reopening of the Strait of Hormuz neared its deadline, he resorted to vulgar threats to attack Iran's infrastructure.

Earlier, OPEC+ had warned in a statement that "any action jeopardizing energy supply security—whether through attacks on infrastructure or disruptions to international maritime routes—will intensify market volatility," making the task of managing global oil prices more complex. The eight countries praised member nations that successfully found alternative export routes, believing these routes help "reduce market volatility."

These eight nations also commended member states that successfully identified alternative export routes, which they believe contribute to "lowering market volatility." On Thursday, the last day before the Easter long weekend, U.S. President Trump threatened Iran with being "pushed back into the Stone Age," prompting another surge in crude oil prices.

The U.S. benchmark crude, West Texas Intermediate (WTI) for May delivery, rose 11.41% to $111.54 per barrel. Brent crude for June delivery increased by 7.78%, reaching $109.03 per barrel. On February 27, just before joint military operations between Israel and the United States began, prices stood at $67.02 and $72.48 respectively. At that time, prices had already reached their highest levels in seven months due to fears of conflict.

Source: rfi

Original article: toutiao.com/article/1861671324485703/

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