OPEC+ is set to agree on Sunday a modest oil output hike, sources said, but the increase will remain largely on paper as long as the United States-Iran war continues to disrupt Gulf oil supplies.
Seven OPEC+ countries have agreed to raise oil output targets by about 188,000 barrels per day in June, the third consecutive monthly increase, the sources said and a draft OPEC+ statement showed. The move is designed to show the group is ready to raise supplies once the war stops. It is also pressing ahead with plans to raise output targets despite the United Arab Emirates’ departure from the group this week, sources said.
The seven members meeting on Sunday are Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. With the UAE leaving, OPEC+ includes 21 members including Iran, but in recent years only the seven nations plus the UAE have been involved in monthly production decisions.