MARKET OVERVIEW - OPEC+'s additional capacity will compensate for the supply shortage from Iran and Venezuela.

According to Kieran Tompkins from Capital Economics, OPEC+'s spare capacity and readiness to increase oil production help mitigate some risks associated with the U.S. efforts to curb crude oil exports from Iran and Venezuela. "These dual campaigns against Iran and Venezuela could lead to a significant decrease in global oil supply," Tompkins stated, suggesting that the market might experience a loss of up to 1.5 million barrels per day.

However, Tompkins noted that "the outlook for these upward risks on oil prices would be very different if OPEC+ did not have approximately 6 million barrels of spare capacity." He anticipated that the upward pressure on oil prices due to U.S. actions against Iran and Venezuela would quickly diminish, with Brent crude oil expected to average $70 per barrel this year.