OPEC+ is set to lift its June production target by 188,000 barrels per day, a symbolic step that could signal a future rebound for Gulf exporters even as the Strait of Hormuz remains closed. The move comes after the UAE unexpectedly exited the group, prompting a reassessment of output plans.
The decision follows the UAE's departure, which left the alliance with seven major members—led by Saudi Arabia and Russia—re‑evaluating its quota strategy. The Strait of Hormuz, a critical chokepoint for Persian Gulf shipping, has been effectively shut by the Iran conflict, curbing the ability of producers to increase supply.
During a video conference, the group is expected to add 188,000 barrels per day to the collective output target for June, a figure that reflects the alliance’s commitment to restoring production levels that were halted several years ago. The increase, however, cannot be implemented immediately due to the blockade, but could be activated once the conflict subsides. Bloomberg noted that OPEC+ is likely to agree another symbolic production increase for June.
Russian Deputy Prime Minister Alexander Novak said that the UAE's decision to leave OPEC won't lead to an imminent price war since the Iran conflict has throttled producers' ability to unleash supplies. Reuters first reported the potential output increase by OPEC+ on Wednesday.
If the conflict in the region eases, the newly set quotas could be activated, potentially easing supply constraints and supporting price stability for drilling operators and rig managers.
