Source Credit : Portfolio Prints
OPEC+ agreed on Sunday to raise oil output by 188,000 barrels per day, pressing ahead with its supply strategy in its first meeting since losing a key member, the United Arab Emirates.
The increase for June is slightly below May’s 206,000 bpd hike and reflects the group’s recalibration following the UAE’s formal exit on May 1. The latest figure excludes the UAE’s former contribution to overall production.
The seven remaining participants—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—said the move aligns with their broader effort to stabilize global oil markets.
“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,” OPEC+ said, referencing voluntary cuts first outlined in April 2023.
The decision comes amid severe supply disruptions linked to the ongoing Iran war, which has effectively shut down the Strait of Hormuz—a critical artery for global oil and gas flows.
Oil prices, however, eased on Friday after Iran submitted a revised peace proposal to mediators in Pakistan, reviving hopes for a potential diplomatic resolution with the United States.
U.S. crude futures fell 3% to settle at $101.94 per barrel, while international benchmark Brent crude declined nearly 2% to $108.17. Despite the pullback, both benchmarks remain roughly 78% higher since the start of 2026.
U.S. President Donald Trump said he had been briefed on the framework of a potential deal but was awaiting full details, cautioning that military action could resume if negotiations falter.
According to Reuters, an Iranian proposal—so far rejected by Washington—would reopen the Strait of Hormuz and end the U.S. blockade, while deferring negotiations over Tehran’s nuclear program.
Supply concerns have been further amplified by the UAE’s unexpected departure earlier in the week. The Gulf state said its exit followed a comprehensive review of its production strategy and long-term capacity goals.
The UAE, a member of OPEC for nearly six decades, had been one of the group’s most influential players and ranked as its third-largest producer as recently as February, behind Saudi Arabia and Iraq.
