CGP Grey
The communiqué indicated that Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman have committed to higher production levels. Based on the OPEC+ announcement, both Saudi Arabia and Russia are authorized to add 62,000 barrels daily starting in June, while Iraq may increase by 26,000, Kuwait by 16,000, Kazakhstan by 10,000, Algeria by 6,000, and Oman by 5,000 barrels per day.
The document further noted that this move was undertaken to preserve equilibrium in global oil markets. The next gathering of these seven OPEC+ nations is scheduled for June 7.
A day earlier, Reuters had reported that the same group had reached a preliminary agreement to boost June output quotas, following the United Arab Emirates' unexpected departure from both OPEC and OPEC+. The news agency observed that the decision was largely symbolic, as crude oil extracted by the organization's Middle Eastern members cannot reach global markets due to the closure of the Strait of Hormuz.
In late April, the UAE declared its exit from OPEC and OPEC+, effective May 1 of this year. According to press reports, the withdrawal stemmed from the US-Israeli military campaign against Iran and Iranian strikes on Emirati territory, as well as Abu Dhabi's ambition to expand its own oil output—an objective that has caused tensions with Riyadh in recent years.
source: reuters.com
The document further noted that this move was undertaken to preserve equilibrium in global oil markets. The next gathering of these seven OPEC+ nations is scheduled for June 7.
A day earlier, Reuters had reported that the same group had reached a preliminary agreement to boost June output quotas, following the United Arab Emirates' unexpected departure from both OPEC and OPEC+. The news agency observed that the decision was largely symbolic, as crude oil extracted by the organization's Middle Eastern members cannot reach global markets due to the closure of the Strait of Hormuz.
In late April, the UAE declared its exit from OPEC and OPEC+, effective May 1 of this year. According to press reports, the withdrawal stemmed from the US-Israeli military campaign against Iran and Iranian strikes on Emirati territory, as well as Abu Dhabi's ambition to expand its own oil output—an objective that has caused tensions with Riyadh in recent years.
source: reuters.com