OPEC+ may consider output hike on Sunday: Report

Logo of OPEC

OPEC+ is likely to consider a further oil output increase when eight members meet on Sunday, in a move aimed at preparing major producers to add more barrels if the Strait of Hormuz reopens, Reuters reported, citing informed sources.

The expected May output increase, to be discussed on Sunday, would have no immediate impact on supply due to the continued closure of the Strait of Hormuz, but would signal the alliance's readiness to boost production once the strait reopens.

The market currently requires every barrel that can be produced, the sources said, noting that the alliance must respond to current developments, at least in theory, to reassure markets.

In early March, OPEC+ agreed to a modest output boost of 206,000 barrels per day for April, after holding output steady in the first quarter amid concerns of oversupply.