OPEC+ Ministers to Discuss Production Quota Increase Amidst Rising Oil Prices

Kathmandu. As oil supply has been disrupted due to the Iran war, prices in the global market are rising rapidly, and 'OPEC Plus' ministers are set to discuss increasing production quotas in Sunday's meeting. The main objective of this step is to bring the rising oil prices in the international market under control.

According to analysts, there is a possibility that OPEC Plus may decide to increase production by about 188,000 barrels per day, which would be consistent with recent decisions. However, due to limited production capacity, only seven countries (Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman) are said to be in a position to increase supply.

After the attacks by America and Israel on Iran, the important sea route Strait of Hormuz has become like a closure, which has affected about 20 percent of the world's oil and gas supply. Due to this disruption, the price of oil in the international market has almost doubled, and its impact on inflation worldwide has started to be seen.

According to experts, even if OPEC Plus announces an increase in production, its actual impact is likely to be limited. According to Saxo Bank analyst Ole Hansen, OPEC does not have many options left to bring about big and decisive changes in the market, due to which its policy impact appears weaker than before.