OPEC+ is set to rubber-stamp another oil output increase, this time adding 188,000 barrels per day to its production quotas. The seven participating member states will formalize the decision at their June 7 meeting, continuing a pattern of incremental supply adjustments that started earlier this year.
The numbers behind the decision
This marks the third consecutive monthly output increase from the alliance. In May, OPEC+ approved a larger hike of 206,000 bpd. The June figure of 188,000 bpd represents a slight deceleration in the pace of quota expansion.
The seven OPEC+ members participating in the quota adjustment are Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman.
Oil prices following the May 3 announcement settled at roughly $101.94 per barrel. The market’s reaction was muted, which tells you something. Traders have largely priced in the reality that these quota increases don’t translate into meaningful supply changes when tankers can’t safely navigate one of the world’s most critical oil chokepoints.
