OPEC+ set to agree third oil output quota hike since Hormuz closure, sources say

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The headquarters of the Group of the Petroleum Exporting International locations (OPEC) in Vienna, Austria, on Sunday, April 5, 2026.
| Picture Credit score:
ANDREY RUDAKOV

OPEC+ is about to agree on Sunday a modest oil output hike, sources mentioned, however the enhance
will ‌stay largely on paper so long as the U.S.-Iran warfare
continues to disrupt Gulf oil provides.

Seven OPEC+ nations ‌have agreed in precept to boost oil
output targets by ‌about ⁠188,000 barrels per day in June, the
third consecutive ⁠month-to-month enhance, the sources mentioned.

The transfer is designed to indicate the group is able to increase
provides as soon as the warfare stops. It’s also urgent on with plans
to boost output ‌targets regardless of the departure of the United Arab
Emirates from the group this week, sources mentioned.

The seven members assembly on Sunday are Saudi Arabia, Iraq,
Kuwait, Algeria, Kazakhstan, Russia, and ‌Oman. With the UAE
leaving, OPEC+ consists of 21 members together with Iran, however in current
years solely the seven nations plus the UAE have been concerned in
month-to-month manufacturing ⁠choices.

The Iran warfare, which started on February 28, and the ensuing
closure of Hormuz have throttled exports from OPEC+ members
Saudi Arabia, Iraq ‌and Kuwait, in addition to from the UAE. Earlier than
the battle, these producers had been the one nations within the
group in a position to increase manufacturing.

The output hike will stay largely symbolic till delivery
by the Strait of Hormuz reopens and even then it would take
a number of weeks if not months for flows to normalise, ‌oil
executives from the Gulf and world oil merchants have mentioned.

The disruption propelled oil costs to a four-year excessive this
week above $125 per barrel as analysts start to foretell
widespread jet ⁠gasoline shortages in a single to 2 months and a spike
in world ⁠inflation.

Crude oil output from all OPEC+ members averaged 35.06
million bpd in March, down 7.70 million bpd from ‌February, OPEC
mentioned in a report final month, with Iraq and Saudi Arabia making
the largest cuts attributable to constrained exports.

Printed on Might 3, 2026