OPEC ignores UAE exit to approve output quota increase

Seven OPEC+ countries have agreed in principle to raise June output targets by about 188,000 barrels per day.

The decision comes ahead of an online meeting on Sunday, according to sources familiar with OPEC+ discussions.

The group continues with the plan despite the United Arab Emirates leaving OPEC+ earlier this week, reshaping internal balances.

The UAE exit, effective May 1, removes its share from collective quota calculations within the producer alliance.

The proposed increase mirrors last month’s 206,000 bpd hike, adjusted after the UAE’s withdrawal from coordination mechanisms.

Sources described the move as largely symbolic, as market flows are disrupted far beyond agreed production targets.

Conflict linked to the US-Israeli war on Iran has closed parts of the Strait of Hormuz, choking key export routes.

Saudi Arabia, Iraq, Kuwait, and the UAE have all faced constrained exports as Gulf shipping lanes remain disrupted.

Iran, though not part of Sunday’s talks, is also under pressure after a US blockade imposed in April restricted shipments.

OPEC data showed March output at 35.06 million barrels per day, down 7.70 million from February levels.

Iraq and Saudi Arabia recorded the sharpest declines, while Russia also cut production after Ukrainian drone strikes damaged infrastructure.

The seven countries scheduled to meet include Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman.

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