OPEC+ raises production quotas; UAE exit concerns

OPEC+ raised oil production quotas for June, signalling continuity within the alliance even as the surprise exit of the UAEcasts a shadow over the group’s cohesion and future policy direction

FPJ News Service MUMBAI

Seven key producers in the OPEC+—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman—on Sunday agreed to increase their collective oil production quota by 188,000 barrels per day for June.

  The move was largely anticipated and comes against the backdrop of ongoing price volatility triggered by the West Asia conflict.  In an official statement, the group said the decision reflects their “collective commitment to support oil market stability”.

 Notably, the statement made no reference to the UAE, which exited the alliance on Friday, just days after formally announcing its withdrawal. The absence of any mention underscores a cautious approach by the group as it seeks to project unity amid internal shifts.

The alliance reiterated that production adjustments will remain flexible and data-driven, with scope to increase, pause, or reverse cuts depending on evolving market conditions. The voluntary production curbs first announced in April 2023—and extended later—may be partially or fully rolled back in a gradual manner. 

  OPEC+ also emphasised the importance of maintaining a cautious strategy, noting that the current move could allow participating countries to accelerate compensation for any past overproduction.

The group reaffirmed its commitment to the Declaration of Cooperation, with adherence to output targets to be overseen by the Joint Ministerial Monitoring Committee. Members also reiterated plans to fully compensate for excess production recorded since January 2024. Quota hike largely symbolic as Strait of Hormuz blockade limits supply; OPEC+ signals control, downplays UAE exit, amid disrupted Gulf exports.