Amid the ongoing West Asia conflict, the Organization of the Petroleum Exporting Countries (OPEC +) have agreed in principle to raise oil output targets for June. According to the cartel’s statement released after its first virtual meeting on Sunday, following the United Arab Emirates exit, the seven OPEC+ countries agreed to increase oil output targets by about 1,88,000 barrels per day next month.
The countries said they will continue to closely monitor and assess market conditions to support market stability. This is the third consecutive monthly increase amid the geopolitical crisis.
Last week, the UAE announced it was leaving the OPEC and OPEC+ cartels. It said the decision reflected its long-term strategic and economic vision and evolving energy profile.
The exit of the UAE is expected to weaken the oil cartel at a time when the Persian Gulf countries have taken a significant hit to their exports due to the closure of the Strait of Hormuz. Following UAE’s departure, OPEC+ has 21 members, including Iran.