OPEC+ announces 188,000 barrels-per-day output increase
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OPEC+ said on Sunday that the cartel had agreed to increase oil production by 188,000 barrels a day in its first meeting since the loss of key member the United Arab Emirates.
The group of seven major oil producers said it would increase June production by slightly less than the 206,000 barrel-per-day increase in May. Sunday’s figure does not include the United Arab Emirates Share of production officially allocated from OPEC on May 1.
The seven countries included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.
“As part of their collective commitment to support oil market stability, the seven participating countries decided to implement a production adjustment of 188 thousand barrels per day from additional voluntary adjustments announced in April 2023,” OPEC said in its report. he said. expression.
Since the start of the Iran war on February 28, oil supplies have been blocked, with the Strait of Hormuz, a vital shipping route for global oil and gas supplies, remaining effectively closed.
Oil prices fell on Friday after Iran sent an updated peace proposal to mediators in Pakistan, raising hopes again that a deal with the United States is still possible.
U.S. crude oil futures closed down 3% at $101.94 per barrel. International benchmark Brent crude oil settled at $108.17, losing nearly 2%. Both are almost 78% higher since the beginning of 2026.
Brent crude oil price, year-to-date.
US President Donald Trump said on Saturday that he had been told of the concept of a deal with Iran but was waiting for definitive wording, warning that there was still the possibility of resuming attacks on the country if Tehran misbehaved.
Reuters quoted a senior Iranian official as saying on Saturday that the Iranian proposal, which has been rejected by Trump so far, would open ships in the Strait of Hormuz and end the US blockade of Iran, while negotiations on Iran’s nuclear program would be postponed until later.
Concerns about production were further fueled on Tuesday by news of the shocking departure of the UAE, the cartel’s third-largest producer.
The Energy Ministry said in a written statement that after a comprehensive review of the Gulf nation’s production policy and capacity, it concluded that exiting the group was in the national interest.
The UAE has played an influential role in OPEC’s decisions for nearly six decades, becoming the group’s third-largest oil producer after Saudi Arabia and Iraq in February.
– Reuters contributed to this story.
