Seven nations within the OPEC+ alliance are expected to approve higher oil production targets during their upcoming Sunday meeting, according to three sources familiar with the discussions who spoke to Reuters on Wednesday.
The planned production increase will be adjusted downward to compensate for the United Arab Emirates’ departure from the oil producer coalition.
Despite the planned increases, most member countries face challenges in actually ramping up production due to shipping disruptions in the Strait of Hormuz caused by the ongoing U.S.-Israeli conflict with Iran.
Prior to the UAE’s unexpected Tuesday announcement that it would withdraw from both OPEC and OPEC+ effective May 1, eight coalition members had been preparing to implement a 206,000 barrel-per-day increase to their production quotas for June. This would have mirrored similar production bumps implemented in April and May, according to sources within OPEC+.
The group now plans to move forward with a comparable increase while subtracting the UAE’s 18,000 barrel-per-day allocation, sources indicated. All individuals providing information requested anonymity, with one noting that no final decision has been reached ahead of the scheduled meeting.
OPEC officials did not provide an immediate response to requests for comment made after regular business hours on Wednesday.
