In a significant move signaling a commitment to market stability, OPEC+ has announced an increase in oil output by 188,000 barrels per day for June. This decision comes in the wake of the United Arab Emirates' unexpected departure from the cartel last week, marking the first meeting without the UAE as a member.
The incremental rise is slightly less than the 206,000 barrels per day increase sanctioned in May. The seven participating countries in this decision include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. OPEC stated in a release, "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 global oil supply has been significantly impacted by the ongoing conflict in Iran, which has led to the effective closure of the Strait of Hormuz, a critical chokepoint for international oil and gas shipments. This situation has amplified concerns about production levels.
Earlier indications of a potential resolution in Iran, following the submission of an updated peace proposal, had led to a dip in oil prices. U.S. crude futures closed down 3% at $101.94 per barrel, while the international benchmark Brent crude saw a nearly 2% decrease, settling at $108.17. Despite these fluctuations, both benchmarks have seen substantial gains, rising nearly 78% since the beginning of 2026.
The absence of the UAE, OPEC's third-largest producer, represents a notable shift for the organization. The UAE's exit was attributed to its national interest following a review of its production policy and capacity. The Gulf state had been an influential voice within OPEC for nearly six decades.
