OPEC+ agreed on Sunday to increase oil production by 188,000 barrels per day starting in June, the group said in a statement [1]. This decision came during their first meeting since the United Arab Emirates officially left OPEC on May 1 [1].
The increase is slightly smaller than the 206,000 barrels per day hike implemented in May [1]. The seven countries participating in the production adjustment are Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman [1]. OPEC said the participating members decided to adjust output "in their collective commitment to support oil market stability," adding that the production adjustment stems from voluntary cuts announced in April 2023 [1].
Oil supply has been constrained since February 28 when war erupted in Iran, according to the report. The conflict caused the Strait of Hormuz to remain effectively closed, further limiting exports [1]. The UAE's exit from OPEC was described as a shock, amplifying concerns about supply disruptions [1].
U.S. crude oil futures dropped 3% to $101.94 per barrel, while Brent crude fell nearly 2% to $108.17 after the announcement [1]. Prices had surged nearly 78% since early 2026 amid ongoing geopolitical tensions and supply shortages [1]. The decline in oil prices came after Iran sent an updated peace proposal to mediators in Pakistan on Friday, and U.S. President Donald Trump cautioned that strikes could resume if Tehran misbehaves [1].
The June output increase will go into effect immediately as OPEC+ adjusts to the new dynamic without the UAE's participation [1]. The group aims to balance supply after months of disruption caused by hostilities in the Middle East and the UAE’s departure.