OPEC+ Provisionally Agrees to June Quota Increase

OPEC+ Nations Reach Provisional Agreement on Modest Supply Increase

Major OPEC+ nations have come to a provisional agreement on another modest but symbolic increase to supply targets for June, marking the group's first move since the UAE's surprise exit. A delegate, who asked not to be identified due to the private nature of the talks, revealed that seven countries led by Saudi Arabia and Russia would add 188,000 barrels a day next month under the agreement, to be finalized at a video conference on Sunday.

This move is largely symbolic, as the Organization of the Petroleum Exporting Countries (OPEC) will be unable to implement the increase unless the Strait of Hormuz is reopened and exports from the Persian Gulf resume. The Strait has been blocked by the US-Israeli conflict with Iran, which has hindered oil exports from the region.

The group is formally continuing the process of restoring output halted several years ago, which had been in progress before the outbreak of war. OPEC+ is adjusting to the surprise loss of long-time member the UAE, which quit the organization on April 28 after years of frustration over constraints on its output. The scheduled hike for this month, similar to the proposed increase for June, is also largely symbolic.

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Note: The proposed increase for each country is subject to change and may not reflect the final agreement.