OPEC+ has agreed to a modest increase to its oil output quotas restricted by the Iran war's impact on its key members production capabilities.
The alliance of oil-producing nations agreed on Sunday to raise its quotas by 206,000 barrels per day for May.
But Reuters reports the rise "will largely exist on paper" as member countries are hindered by the Middle East conflict and the effective closure of the Strait of Hormuz, through which 20% of the world's oil supplies flow.
The Strait closure has cut exports from Saudi Arabia, the UAE, Kuwait and Iraq, which had been the only OPEC+ members capable of substantially increasing their production levels even prior to the war.
While the 206,000 barrels per day increase makes up less than 2% of the supply disrupted by the war, sources have told Reuters it signals readiness to raise output levels once the Strait reopens fully.
Jorge Leon, head of geopolitical analysis at Rystad Energy. told Reuters: "In reality it adds very few barrels to the market.
"When the Strait of Hormuz is closed additional barrels from OPEC+ become largely irrelevant.”