The decision, reached during a Sunday meeting of eight key members, followed debates on options ranging from 137,000 bpd to 548,000 bpd. The group, which includes Saudi Arabia, Russia, the UAE, Kazakhstan, Kuwait, Iraq, Algeria, and Oman, has a history of raising production to cushion market disruptions.
However, analysts noted that the group currently possesses little spare capacity to supplement global supply, with the exception of Saudi Arabia and the United Arab Emirates. Both nations are expected to face difficulties exporting oil until navigation in the Gulf returns to normal.
Shipments of oil, gas, and other commodities through the Strait of Hormuz, the world’s most critical oil route, accounting for over 20% of global transit, have been at a halt since Saturday. The suspension followed a warning from Iran that the area was closed for navigation.
