Seven countries within the OPEC+ alliance will increase their targeted oil production levels by 188,000 barrels per day in June. This marks the third consecutive monthly increase in quotas, with the volume of the increase mirroring May’s figure, except for the share of the United Arab Emirates, which changed following their exit from the alliance.
This is reported by Finway
Signals of Stability Despite UAE Exit
This decision aims to demonstrate OPEC+’s readiness to boost supply after the end of military actions and to emphasize that the organization continues to operate as usual, despite the UAE’s departure. According to experts, the increase in quotas will not have a significant impact on physical supply volumes due to the restrictions in the Strait of Hormuz, which is a key route for oil transportation.
“OPEC+ is sending a double signal to the market: stability despite the UAE exit and control despite the limited physical effect. While the figures are rising on paper, the real impact on physical deliveries is minimal due to the restrictions in the Strait of Hormuz. This is rather a signal that OPEC+ continues to manage the process,” said Rystad analyst and former OPEC official Jorge Leon.
Changes in the Alliance Structure and Production Quotas
According to the updated agreements, Saudi Arabia — the largest producer within OPEC+ — will raise its quota for June to 10.291 million barrels per day, significantly exceeding the actual March production level of 7.76 million barrels per day.
The Sunday meeting included Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. Following the UAE’s exit, OPEC+ now consists of 21 countries, including Iran. However, only these seven states and the UAE participated in the monthly production decisions.
In March, the average crude oil production by all OPEC+ participants was 35.06 million barrels per day — 7.7 million barrels less than in February. The main cuts were borne by Iraq and Saudi Arabia due to reduced exports. The next meeting of representatives from the seven countries in the alliance is scheduled for June 7.