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Seven OPEC+ Producers Back Small June Quota Hike After UAE Exit

Analysts see limited market impact given war-related supply constraints.

Overview

  • Seven OPEC+ producers, a coalition of major oil exporters, have agreed in principle to lift June output targets by about 188,000 barrels a day.
  • The move is set to be taken up for formal approval at a virtual policy meeting of the participating states.
  • The United Arab Emirates has left the group’s coordination framework, which makes the planned increase smaller than last month’s adjustment.
  • Analysts expect little real supply change because a blockade at the Strait of Hormuz and war damage to facilities have already curbed exports.
  • Output tied to quotas has fallen far below stated limits, with Rystad Energy citing a gap near 9 million barrels a day, which shows why small target tweaks have limited effect.