OPEC+ hikes oil production quotas but stays mum on UAE pull-out
Key takeaways
- Rystad Energy analyst Jorge Leon told AFP that the silence on the UAE's departure was a sign of tense relations.
- Oil market analysts had widely expected the increase of 188,000 barrels, similar to the 206,000-barrel daily increases OPEC+ announced in both March and April when the portion allotted to the UAE was subtracted.
- "By sticking to the same production path -- just minus the UAE -- it's acting as if nothing has happened, deliberately downplaying internal fractures and projecting stability," Leon said.
Why this matters: an international story with cross-border implications worth tracking.
Vienna (AFP) – Saudi Arabia, Russia and five other OPEC+ countries increased their oil production quota on Sunday in an expected move aimed at demonstrating continuity at the cartel after the shock withdrawal of the United Arab Emirates.
The UAE's departure from OPEC and OPEC+ further rattled oil markets roiled by the Mideast war © JOE KLAMAR / AFP/File The seven major producers will add 188,000 barrels per day to their total production quota for June amid the price pressure unleashed by the Mideast war, as part of "their collective commitment to support oil market stability", according to a statement published by OPEC+.
The statement, following an online meeting of Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia and Saudi Arabia, made no mention of the United Arab Emirates, which quit the body on Friday, three days after announcing its withdrawal.