OPEC+ warns of cost of repairing energy assets in Middle East

Eight countries comprising the core of the OPEC+ group of oil producers have expressed concern over Iran’s attacks on energy infrastructure amid oil shortages persisting amid the war in the Middle East.
“Restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability,” the countries said in a joint statement after an online meeting.
They also highlighted the “critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy”—a reference to the Strait of Hormuz, which Iran has effectively blocked in reaction to U.S.-Israeli attacks.
The group—consisting of Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman—said they would increase oil production in May by 206,000 barrels per day.
Given the blockade of the Strait of Hormuz, through which around 20 per cent of global oil trade passes, the move is more symbolic than practical, as the oil market faces a supply problem rather than a production shortage.
Much of the available oil supply is currently going to Asia, namely China, Japan and South Korea, according to Carsten Fritsch, an analyst at Germany’s Commerzbank.
“Asia is currently sucking everything up like a vacuum cleaner,” he said.
U.S. President Donald Trump has urged countries facing shortages to source oil from the United States.
However, the impact on global prices remains uncertain, as they are determined by global supply, which has been constrained by the war.
According to figures from the International Energy Agency in March, countries in the Gulf region have reduced their daily oil production by at least 10 million barrels, or nearly 10 per cent of global demand, citing limited storage capacity for oil that cannot pass through the Strait of Hormuz.
(dpa/NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette

Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”

Politics
Heaven won’t fall if INEC bars ADC from participating in 2027 elections, derecognition of leaders self-inflicted: APC
“Heaven will not fall if the ADC or any other party fails to appear on the ballot as a result of its own non-compliance,” said APC.

Economy
COVID-19 Loans: House of Reps urges flexible repayment plan
The House of Representatives has directed the Central Bank of Nigeria, NIRSAL, and SMEDAN to restructure the repayment system for the recovery of the COVID-19 loans.

Abuja
FG begins mass trial of suspected terrorists in Abuja
The Abuja Division of the Federal High Court on Tuesday began the mass trial of suspected terrorists charged with terrorism offences.

Politics
Party affiliation won’t determine Abia Central senatorial election winner: Onuigbo
A former House of Representatives member, Sam Onuigbo, says the 2027 Abia Central senatorial district election will not be determined by party sentiments.

Economy
N3.3 Trillion Debt Payment: Abuja residents optimistic of improved power supply
The long-standing debts accumulated between February 2015 and March 2025 following verification.

States
FRSC intercepts mixed loading vehicles in Kaduna
Over 100 people were found being transported alongside animals and goods in conditions described as unsafe and life-threatening.




