OPEC+ Alliance Agrees to a Slight Increase in Oil Production Quotas
Reuters, citing informed sources, reported that seven OPEC+ member countries have preliminarily agreed to raise oil production targets by about 188,000 barrels per day in June, continuing their plans despite the UAE's withdrawal from OPEC and the alliance.
Seven key countries in the alliance—including Saudi Arabia, Russia, Iraq, and Kuwait—are set to hold a meeting to discuss production levels, with expectations that the gradual approach to adjusting quotas will continue.
One source told the agency that the decision, if adopted, would reflect the alliance's commitment to its current policies despite the challenges, while stressing that a final decision has not yet been made.
This increase is close to the 206,000 barrels per day approved last month, after deducting the share of the UAE, which announced last week its decision to withdraw effective May 1.
The production increases are largely symbolic at present, with most shipments through the Strait of Hormuz halted due to the American-Israeli war on Iran, causing a much greater disruption to OPEC member states' production than the group's agreed targets.
The UAE's exit reduces the number of alliance members to 21 countries, while the seven main countries continue to play the biggest role in determining monthly production policies.
Starting yesterday, Friday, the UAE's decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance, which it issued on April 28, came into effect.
The UAE stated at the time that its decision "is in line with its long-term strategic and economic vision and the development of its energy sector, including accelerating investment in domestic energy production," according to the Emirates News Agency.
It noted that the decision came "after an extensive review of the state's production policy and its current and future capacity," as well as due to ongoing "disruptions in the Arabian Gulf and the Strait of Hormuz, which affect supply dynamics."
Source: Reuters
