OPEC+ Increases Oil Output by 188,000 Barrels Per Day

OPEC+ has agreed an increase in oil output of 188,000 barrels per day, the cartel said on Sunday, as it pushes on with production in the first meeting since the loss of its key member, the United Arab Emirates. The group of seven major oil producers announced it would increase June production by slightly less than May's output hike of 206,000 bpd. Sunday's figure excludes the United Arab Emirates share of output, which officially departed OPEC+ on May 1. The seven countries included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. "In 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 the additional voluntary adjustments announced in April 2023," OPEC said in its statement. Oil supply has been choked since the Iran war began on February 28, as the Strait of Hormuz – a vital shipping route for global oil and gas supplies – has remained effectively closed. Concerns around production were amplified further on Tuesday with news of the shock departure of the UAE, the cartel's third-largest producer. The Gulf state concluded that exiting the group was in its national interest following a comprehensive review of its production policy and capacity, the Energy Ministry said in a written statement. The UAE had played an influential role in OPEC's decisions over nearly six decades and was the group's third-largest oil producer in February, behind Saudi Arabia and Iraq.