The oil-producing countries of the OPEC+ oil cartel will be opemimg up the oil taps even more, now that oil prices are threatening to rise sharply due to the attacks on Iran. The countries made this decision on Sunday. However, this step is unlikely to prevent oil from becoming more expensive in the coming days. Motorists should expect a gasoline price increase of several cents at the pump. The same applies to jet fuel purchases.

The group of oil-producing countries, led by Saudi Arabia and Russia, previously decided to keep oil production stable for the time being. Now that a sharp price increase is suddenly looming, they see an opportunity to further increase their production without leading to lower prices. The countries have agreed to increase production by 206,000 barrels per day in April.

The step will certainly have a mitigating effect on the potential price increase. However the restrictions on shipping in the Strait of Hormuz will have a more disruptive impact. As a result, oil and gas supplies are under pressure in the short term, and insurance premiums for oil tankers are rising sharply. This is having an impact on prices.

Fuel prices will rise, this is certqin. Analists say "Let's also not forget that oil prices have already risen considerably in recent months". This still needs to be partly reflected in fuel prices.

The oil markets are closed over the weekend, but they will today. The first market reaction will be visible then.

Iran is also a member of OPEC. The country normally produces 3.3 million barrels of oil per day, around 3 percent of global production. This makes it the fourth-largest producer within the oil cartel. However, its strategic location on the Strait of Hormuz gives the country much greater influence on global oil supplies. Approximately one-fifth of the world's crude oil passes through this strait.

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* Origin: AVIATION ECHO HQ (2:292/854)