Eco
The OPEC+ alliance is expected to approve a fourth consecutive increase in oil production targets on Sunday, according to informed sources within the alliance. This move comes despite ongoing tensions hindering the ability of some member states to pump additional crude. These circumstances have led to a reduction in oil flows through the Strait of Hormuz, causing the largest global supply crisis, particularly with key alliance nations unable to fully meet their customers' demands since late February. The crisis for OPEC+ deepened following the withdrawal of the United Arab Emirates from the Organization of the Petroleum Exporting Countries (OPEC) after nearly six decades of membership. Seven core members of the OPEC+ alliance, which includes OPEC nations and partners like Russia, had previously raised their production quotas by approximately 600,000 barrels per day between April and June. However, OPEC data showed a sharp decline in the group's actual production due to reduced exports from Gulf states, averaging 33.19 million barrels per day in April, compared to 42.77 million in February. Sources anticipate that these same seven members will raise production targets by 188,000 barrels per day starting in July. This increase is similar to the one approved for June, following a downward adjustment from the monthly increases of 206,000 barrels per day in May and April. The seven involved countries, out of 21 OPEC+ member states scheduled to meet on Sunday, are: Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. The sources also indicated that a full ministerial meeting of OPEC+ is planned for Sunday, but no significant changes to the overall production policy are expected.
