OPEC+ Set For Fourth Oil Quota Hike Since Hormuz Closure

LONDON, June 7 (Reuters) – OPEC+ is expected to agree on Sunday to raise oil production targets for the fourth consecutive month, according to three sources. This decision comes even as the ongoing U.S. conflict with Iran hampers some members of the group from increasing their output.

The conflict has disrupted oil flows through the Strait of Hormuz, resulting in the most significant supply crisis in history. Key OPEC+ countries like Saudi Arabia have struggled to fully meet customer demands since the end of February. Furthermore, the crisis intensified when the United Arab Emirates left the Organization of the Petroleum Exporting Countries after nearly 60 years.

From April to June, seven core OPEC+ members, comprising both OPEC and allied producers like Russia, have collectively raised their output quotas by nearly 600,000 barrels per day.

However, the actual production has dropped significantly due to cuts in exports by Gulf members. OPEC's figures show that production averaged 33.19 million barrels per day in April, a decrease from 42.77 million barrels in February.

On Sunday, these seven members are anticipated to increase their targets by approximately 188,000 barrels per day starting in July. This is consistent with the June adjustment, which had been revised down from the previous increases of 206,000 barrels per day in May and April, influenced by the UAE's departure.

All sources requested anonymity, noting that a final decision had not yet been reached.

OPEC and OPEC+ will hold four meetings on Sunday, starting at 1230 GMT, according to two sources.

The seven OPEC+ members expected to meet include Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. In recent years, decisions regarding output policy have largely involved these seven members, along with the UAE during its membership.