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OPEC+ has agreed to increase production by 188,000 barrels a day, the group announced on Sunday, as the group boosts production in its first meeting since losing key member the United Arab Emirates.
The group, which is made up of seven major oil producers, said June’s production increase would be slightly lower than May’s 206,000 barrels per day increase. Sunday’s figures do not include output from the United Arab Emirates, which formally left OPEC on May 1.
The seven countries include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.
“In a joint commitment to support oil market stability, the seven participating countries have decided to implement a production adjustment of 188,000 barrels per day from the additional voluntary adjustment announced in April 2023,” OPEC said in a statement.
Oil supplies have been disrupted since the Iran war began on February 28 as the Strait of Hormuz, a key shipping route for global oil and gas supplies, remains effectively closed.
Oil prices fell on Friday after Iran sent its latest peace proposal to Pakistani mediators, renewing hopes that a settlement with the United States is still possible.
US crude oil futures fell 3% to close at $101.94 per barrel. Brent crude, the international benchmark, fell nearly 2% to settle at $108.17. Both are up nearly 78% compared to the beginning of 2026.
Brent crude oil price, year to date.
US President Donald Trump said on Saturday he had been informed of the concept of a deal with Iran but was awaiting the exact wording, warning that there was still a chance he could resume attacks on the country if Iran misbehaved.
Reuters quoted a senior Iranian official as saying on Saturday that the Iranian proposal, which President Trump had previously rejected, would begin shipping in the Strait of Hormuz and lift the U.S. blockade of Iran, while putting talks about Iran’s nuclear program on the back burner.
Concerns over production were further amplified on Tuesday by news of the shock departure of the UAE, the cartel’s third-largest producer.
The Energy Department said in a written statement that the Gulf state had concluded after a comprehensive review of its production policies and capacities that it was in its national interest to withdraw from the group.
The UAE has played an influential role in OPEC decisions for nearly 60 years, and as of February was the group’s third-largest oil producer after Saudi Arabia and Iraq.
– Reuters contributed to this article.
