OPEC+ Seven Nations to Increase Oil Production From June After UAE Withdrawal Shock

Daily Increase of 188,000 Barrels

Major oil-producing countries, including Saudi Arabia and Russia, have agreed to increase crude oil output from June, exceeding previously planned production levels.

According to the Organization of the Petroleum Exporting Countries (OPEC) on the 3rd (local time), seven member states of OPEC+—which includes Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—announced in a joint statement that they will implement a production adjustment of 188,000 barrels per day starting in June. They explained, "This is part of a joint effort to stabilize the oil market."

Looking at the additional production allowed by country, starting in June, Saudi Arabia and Russia can each increase output by 62,000 barrels per day. Iraq is allowed an increase of 26,000 barrels, Kuwait 16,000 barrels, Kazakhstan 10,000 barrels, Algeria 6,000 barrels, and Oman 5,000 barrels per day. These countries have also agreed to hold a meeting on June 7 to discuss the oil market and compliance with production cuts, and plan to continue holding monthly meetings going forward.

This decision to ease production cuts is seen as a response to the recent announcement by the United Arab Emirates (UAE) that it would withdraw from OPEC and OPEC+. Previously, the UAE had signaled its intention to leave OPEC+ and unilaterally increase production in protest against the production quota system imposed by the oil producer cartel, amid volatility in international oil prices due to instability in the Middle East.

OPEC and OPEC+, led by Saudi Arabia, have so far regulated oil prices by limiting production through allocation quotas for member countries. After the UAE's announcement, OPEC+ effectively shifted its strategy to 'allowing increased production' in order to prevent further withdrawals of other member states.

This content was produced with the assistance of AI translation services.