OPEC Members Raise June Oil Output Quota By 188,000 Bpd Amid West Asia Disruptions

Seven OPEC members have agreed to raise oil production quotas by 188,000 barrels per day (bpd) for June as global crude prices remain elevated due to supply disruptions linked to the conflict in West Asia.

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According to AFP, Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia and Saudi Arabia approved the increase during an online meeting held on May 3. The group said the move reflects “their collective commitment to support oil market stability”.

The increase is largely in line with the output adjustments announced in March and April, when the group had also approved production hikes after excluding the United Arab Emirates’ allocation.

UAE Withdrawal Not Mentioned

The official statement issued after the meeting did not mention the United Arab Emirates’ withdrawal from OPEC, which was announced on May 1.

According to AFP, Rystad Energy analyst Jorge Leon said the producers were maintaining the same production path while excluding the UAE’s share, signalling that the organisation intends to continue existing arrangements without disruption.

The UAE had one of the larger production allocations within the group before its withdrawal. State-owned ADNOC has been expanding production capacity and has announced plans to increase output capacity to 5 million bpd by 2027.

ADNOC also announced investments worth $55 billion in new energy projects over the next two years.

Strait Of Hormuz Continues To Impact Supplies

Oil supply disruptions linked to the Strait of Hormuz continue to affect global markets despite the announced quota increase.

The shipping route remains affected following the conflict in West Asia that began on February 28 after U.S.-Israel strikes and Iran’s response. The Strait of Hormuz is a major route for global crude shipments and is used heavily by producers in Iraq, Kuwait, Saudi Arabia and the UAE.

According to data cited by AFP from Rystad Energy, total OPEC production under quota stood at 27.68 million bpd in March against a quota target of 36.73 million bpd, resulting in a gap of nearly 9 million bpd.

Crude Prices Stay Elevated

Brent crude prices have remained above $100 per barrel in recent weeks amid continued concerns over supply flows from West Asia.

Russia, one of the largest oil producers in the group, has continued to supply crude to global markets, although production operations have also faced pressure due to the ongoing conflict involving Ukraine.