Breaking

OPEC+ Seven Agree in Principle to Raise June Oil Output by 188,000 Barrels a Day

Uk Jin

Summary

Reuters reported that seven OPEC+ countries including Saudi Arabia and Russia agreed in principle to raise their June crude production target by about 188,000 barrels a day.
The increase matches last month’s 206,000-barrel-a-day hike excluding the UAE’s share, and the UAE withdrew from OPEC and OPEC+ effective May 1.
The latest output increase may be largely symbolic because the war between the US and Iran has effectively halted oil shipments through the Strait of Hormuz.

OPEC+’s seven core producers have decided to maintain their gradual output increase policy even after the United Arab Emirates left the group.

Reuters, citing multiple sources on May 2, reported that seven OPEC+ members including Saudi Arabia and Russia had agreed in principle to raise their June crude production target by about 188,000 barrels a day.

The increase is equivalent to last month’s 206,000-barrel-a-day hike excluding the UAE’s share. The UAE withdrew from OPEC and OPEC+ effective May 1.

The production increase may end up being largely symbolic. The war between the US and Iran has effectively halted oil shipments through the Strait of Hormuz, meaning producers may be able to pump more crude but struggle to deliver those barrels to market.