OPEC+ Raises Output as Oil Prices Surge to $120

Oil prices have reached approximately $120 per barrel, marking a four-year high, following OPEC+'s decision to raise output by 206,000 barrels per day during a virtual meeting held on Sunday. The increase was agreed upon despite ongoing geopolitical tensions that are disrupting global supply.

Analysts indicate that the additional supply may remain largely theoretical due to production constraints affecting key member countries. The U.S.-Israel conflict and Iran's infrastructure damage are significant factors hampering actual output.

The OPEC+ alliance, which comprises 22 member countries, is facing challenges, including persistent attacks on oil infrastructure. The Joint Ministerial Monitoring Committee has raised alarms about these attacks, which are costly and time-consuming to repair.

Furthermore, the situation in the Strait of Hormuz, a critical oil transit route, remains precarious, with significant export cuts from key producers like Saudi Arabia and Iraq. Analysts from JPMorgan Chase project that oil prices could exceed $150 per barrel if the current disruptions persist.