Seven key members of the OPEC+ alliance, including Saudi Arabia and Russia, have agreed to a modest increase in oil production starting in June, signaling their commitment to market stability despite ongoing geopolitical turmoil.
The group—also comprising Algeria, Iraq, Kazakhstan, Kuwait, and Oman—announced a combined output rise of 188,000 barrels per day after a virtual meeting on Sunday. The move is largely symbolic, as it comes during a severe disruption in global oil flows caused by Iran’s blockade of the Strait of Hormuz, a strategic chokepoint through which roughly one-fifth of the world’s oil and gas trade passes.
The blockade, enacted amid the ongoing U.S.-Israeli conflict, has halted much of the oil shipped from Gulf producers, effectively removing millions of barrels daily from the global market. The production increase pales in comparison to the volumes lost, analysts note.
The decision also follows the United Arab Emirates’ recent exit from OPEC, a seismic shift that rattled the 65-year-old alliance responsible for approximately 40% of the world’s crude output. The UAE’s departure has raised questions about the group’s long-term cohesion.
Iran remains a full OPEC member, while Russia coordinates with the cartel through the broader OPEC+ framework. The seven nations pledged to hold monthly meetings to review market conditions and compliance, with the next gathering scheduled for June 7.