Khaberni - Reuters quoted informed sources expecting that the OPEC+ alliance will agree on a slight increase in oil production at its anticipated meeting next Sunday, despite supply disruptions and the UAE's withdrawal from the alliance.
Three sources told the agency that the expected increase could be about 188 thousand barrels per day, a level close to the increase approved last month, excluding the UAE's share after its withdrawal, which takes effect at the beginning of May.
A meeting to discuss production levels is scheduled by seven key countries in the alliance – including Saudi Arabia, Russia, Iraq, and Kuwait – amidst expectations that the gradual approach in adjusting quotas will continue.
One of the sources indicated that the decision, if adopted, would reflect the alliance's commitment to its current policies despite the challenges, confirming at the same time that the final decision has not yet been determined.
Supply Disruptions
The expectations come amid the repercussions of the war on Iran, which led to the closure of the Strait of Hormuz and disrupted exports from several major producers in the Gulf, including Saudi Arabia, Iraq, Kuwait, and the UAE.
Before the outbreak of the war, these countries were among the few able to increase production, but the current restrictions have limited their ability to meet any targeted increases.
OPEC data shows the alliance's production declined to about 35.06 million barrels per day in March, down 7.7 million barrels per day from February, due to export restrictions and reduced production in several countries.
The UAE's exit reduces the number of alliance members to 21 countries, while the seven main countries continue to play the largest role in determining monthly production policies.
