OPEC+ likely to agree another oil output hike without UAE, sources say

SEATTLE (Oil Monster): OPEC+ will likely agree a small oil output quota hike on Sunday despite the loss of the lion's share of its exports due to the U.S.-Israeli war with ​Iran and the exit of a key member, the United Arab Emirates, three ​sources with knowledge of the discussions told Reuters.

The oil producer group will ⁠likely agree an increase of around 188,000 barrels per day in oil output ​targets, the sources said. The increase is similar to last month's hike of 206,000 bpd ​minus the share of the UAE, which leaves the group from May 1.

The decision would signal that OPEC+ is pressing on with a business as usual approach, one of the sources said.

All sources spoke ​on condition of anonymity. The group has yet to take a final decision ahead ​of the meeting, another of the sources said.

OPEC did not immediately respond to a request for comment ‌sent ⁠after business hours on Wednesday.

The Iran war which began on February 28 and the resulting closure of Hormuz has throttled exports from OPEC+ members Saudi Arabia, Iraq and Kuwait, as well as the UAE. Before the conflict, these producers were the only countries in ​the group able to ​raise production.

Crude oil output ⁠from all OPEC+ members averaged 35.06 million bpd in March, down 7.70 million bpd from February, OPEC said in a report ​earlier this month, with Iraq and Saudi Arabia making the biggest ​cuts due ⁠to constrained exports. Outside the Gulf, Russia has also cut output after infrastructure was damaged by Ukrainian drone attacks.

The seven members meeting on Sunday are Saudi Arabia, Iraq, Kuwait, Algeria, ⁠Kazakhstan, ​Russia, and Oman. With the UAE leaving, OPEC+ includes ​21 members including Iran, but in recent years only the seven nations plus the UAE have been involved ​in monthly production decisions.

Courtesy: www.reuters.com