OPEC+ will increase oil production following the UAE’s withdrawal
3 May 21:15
Seven OPEC+ countries have agreed to increase their oil production targets by 188,000 barrels per day in June, the organization reported. In its statement, it did not comment on the United Arab Emirates’ (UAE) decision to withdraw from the organization amid the energy crisis, reports "Komersant Ukrainian", citing DW.
Thus, OPEC+ will continue to increase oil production for the third consecutive month. According to Reuters sources, the new increase in production targets will roughly correspond to the 206,000-barrel-per-day increase in output in May—excluding the share of the United Arab Emirates (UAE), which withdrew from the organization on May 1.
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The increase in oil production is intended to demonstrate that the group is prepared to boost energy supplies once the war between the U.S. and Israel against Iran ends, Reuters sources noted. For now, they said, this decision is largely symbolic, as most shipping through the Strait of Hormuz is blocked due to the war.
The UAE has withdrawn from OPEC and OPEC
In late April, the UAE announced that it would withdraw from the Organization of the Petroleum Exporting Countries (OPEC and OPEC+) effective May 1. Following this, it will gradually bring additional production to the market in line with demand and market conditions, officials in Abu Dhabi stated.
The transport of oil from the Persian Gulf countries has been complicated by Iran’s blockade of the Strait of Hormuz, which typically accounts for one-fifth of global oil supplies. The UAE has been severely affected by Tehran’s attacks since the start of the U.S. and Israeli war with Iran.
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