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OPEC+ Raises June Oil Output Quota by 188,000 Barrels Per Day
OPEC+ raised oil production quotas for June by 188,000 barrels per day during an online meeting, involving seven key members but excluding the United Arab Emirates after its recent exit. The decision comes against a backdrop of output shortfalls and disruptions from the Mideast war, including blockades in the Strait of Hormuz. Analysts noted the move signals continuity despite internal changes.
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Seven OPEC+ members increased oil production quotas by 188,000 barrels per day for June following an online meeting on Sunday. The increase involved Saudi Arabia, Russia, Algeria, Iraq, Kazakhstan, Kuwait and Oman, according to the OPEC+ statement.
The statement made no mention of the United Arab Emirates. The UAE announced its withdrawal from OPEC+ effective Friday and separately announced its withdrawal from OAPEC as of May 1, according to the Organization of Arab Petroleum Exporting Countries.
The meeting marked the first decision on oil-production quotas since the UAE's departure. OPEC+ had announced 206,000-barrel daily increases in both March and April. The decision followed widespread expectations of an increase similar to those in March and April, with the UAE's portion subtracted.
OPEC+ did not release a public comment on the UAE's withdrawal. No UAE officials were quoted in coverage of the Sunday meeting.
Analyst Priya Walia at Rystad Energy said the group is producing around 73 million barrels per day. She added that the shortfall in OPEC+ output in March was approximately 9 million barrels per day, stemming largely from war-related disruptions.
Rystad Energy analyst Jorge Leon told AFP that raising the quota on paper may not impact actual production given constraints in the Gulf region. He said untapped OPEC+ reserves are mainly located in the Gulf region where exports are affected by the Strait of Hormuz blockade that began after the Mideast war started on February 28.
The blockade affects exports from Iraq, Kuwait, Saudi Arabia and the United Arab Emirates.
Leon said the decision followed the same production path minus the UAE. He added that the real impact on physical supply remains very limited given the Strait of Hormuz constraints.
