OPEC Plus Boosts Oil Production Amid Middle East Tensions

0:00On March 2nd, eight countries in the OPEC-plus group announced plans to ramp up oil production right as tensions exploded in the Middle East. US and Israeli forces struck Iran, prompting retaliation against Israel and American bases near the Gulf, which has already snarled some oil, shipments from the area. The move came out of a Sunday meeting that was set up before the fighting started. Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman will add 206,000 barrels per day, starting in April, beating what most experts predicted. Attacks hit two ships in the strait of Hormuz, the key choke point for Gulf exports, raising fears of bigger disruptions. That narrow waterway handles about one-fifth of the world's oil supply, so any blockade could spite prices at the pump for everyone. Energy analysts warned that even extra production might not help much if ships can't get through. Iran ships 1.6 million barrels daily, mostly to China, and pastures there have already caused brief closures.

1:04Markets are bracing for a jump when trading resumes, with Brent crude possibly climbing $20 from its Friday close of $72,87, as the focus stays on safe passage for those vital oil flows.