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OPEC+ Countries Boost Oil Output by 188,000 BPD After UAE Exit

Seven OPEC+ countries have decided to increase their oil production cap by 188,000 barrels per day in June, following the UAE's exit from the bloc. The decision was made during a virtual meeting to review global market conditions and outlook. The group emphasized a cautious and flexible approach, with production levels subject to adjustment based on market conditions. This marks the first meeting since the UAE's departure on May 1, amid ongoing disruptions in Gulf oil supplies due to the closure of the Strait of Hormuz.

Key Points: OPEC+ Increases Oil Output by 188,000 BPD in June

  • UAE exits OPEC+ bloc on May 1
  • Seven countries increase output by 188,000 bpd in June
  • Decision made in first meeting after UAE departure
  • Monthly meetings to review market conditions and compliance
2 min read

OPEC+ countries in 1st meeting after UAE's exit announces 188,000 barrels-per-day output increase

Seven OPEC+ countries, including Saudi Arabia and Russia, raise oil production cap by 188,000 barrels per day in June after UAE's exit from the bloc.

"Reaffirming their commitment to oil market stability, the countries stressed the need for a cautious and flexible approach - OPEC statement"

Vienna, May 3

Seven OPEC+ countries have decided to increase their oil production cap by 188,000 barrels per day in June, in response to the withdrawal of the United Arab Emirates from the bloc, OPEC said in a statement on Sunday.

The countries- Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman -- made the decision during a virtual meeting today to review global market conditions and outlook.

The increase, which will be implemented in June 2026, is part of adjustments to the additional voluntary production cuts first announced in April 2023.

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.

The group said the voluntary adjustments could be returned gradually, either in part or in full, depending on "evolving market conditions and in a gradual manner."

Reaffirming their commitment to oil market stability, the countries stressed the need for a cautious and flexible approach, noting that production levels could be increased, paused or reversed as necessary, including adjustments introduced in November 2023.

The seven OPEC+ countries also said the move would provide an opportunity to accelerate compensation for any overproduction since January 2024.

They reiterated their commitment to full compliance with the Declaration of Cooperation, with output levels to be monitored by the Joint Ministerial Monitoring Committee.

They also confirmed their intention to fully compensate for any overproduced volume since January 2024.

Further, the seven countries will hold monthly meetings to review market conditions, conformity, and compensation.

They will hold a meeting on June 7 this year.

The announcement comes in the first meeting of the cartel since the departure of the United Arab Emirates on May 1.

Since the beginning of the Iran war on February 28, Gulf oil supplies continue to remain disrupted as the Strait of Hormuz a key shipping route for global oil and gas supplies, remains effectively closed.

- ANI

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Reader Comments

M
Michael C
A cautious increase of 0.188 million barrels per day, while the market is already tightening due to Hormuz closure. This feels like a signal more than a solution. For India, which depends on Gulf oil for over 60% of our needs, every such decision means higher import bills. The real test will be if they can sustain stability without UAE in the group.
S
Sneha F
Good to see OPEC+ trying to keep market calm, but I worry about India's energy security. With UAE gone and Hormuz blocked, we're seeing the fragility of relying on this region. ₹300 per litre petrol in some states already hurts common citizens. We need faster push on renewables and domestic production, not just wait for cartel decisions every month.
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Naveen S
Honestly, 188,000 barrels is a drop in the ocean when global demand is recovering and Gulf supplies are disrupted. The real story here is UAE's exit—Abu Dhabi has been pushing for higher quotas for years. For Indian consumers, expect petrol and diesel to stay expensive this summer. The 'gradual return' clause is just diplomatic speak for 'we don't know what's happening either.' 🤷
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Arun Y
Respectful criticism: While OPEC+ cites 'market stability,' this hike feels inadequate given the crisis. India has already diversified by buying discounted Russian crude, but the logistics cost eats into savings. The June 7 meeting will be key—if the situation in Hormuz doesn't improve, we might see a bigger output boost or even emergency releases from strategic reserves.
J
Jennifer L
Interesting how the seven

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