OPEC+ raises output quota after UAE withdrawal from cartel amid Iran conflict

The OPEC+ on Sunday (May 03) increased its oil production quota, signalling continuity within the group after the sudden exit of the United Arab Emirates earlier this week. In a statement, the alliance said seven key producers, including Saudi Arabia, Russia, Iraq, Kazakhstan, Kuwait, Oman and Algeria, will raise output by 188,000 barrels per day in June. The group said the move reflects “their collective commitment to support oil market stability,” but made no reference to the UAE’s departure.

The increase was widely expected and follows similar production hikes announced in March and April. However, the higher quota may not significantly change actual supply, as several members are already producing below their assigned limits.

Supply constraints continue to affect the market, particularly in the Gulf region, where a large share of untapped reserves is located. Exports have been disrupted due to tensions around the Strait of Hormuz, triggered by Iran following US and Israeli strikes earlier this year. Oil prices have remained above $100 per barrel for nearly two months, putting pressure on economies, industries and airlines worldwide.

The UAE, one of the world’s top oil producers, formally exited both the Organisation of the Petroleum Exporting Countries (OPEC) and OPEC+ after announcing its decision on April 28, with the move taking effect on Friday.

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Explaining the decision, UAE Energy Minister Suhail bin Mohammed Al Mazrouei said, “The UAE’s decision to exit Organisation of the Petroleum Exporting Countries reflects a policy-driven evolution aligned with long-term market fundamentals. We thank OPEC and its member countries for decades of constructive cooperation. We remain committed to energy security by providing reliable, responsible and lower-carbon supply, while supporting stable global markets.”

He added that the decision followed a review of the country’s production strategy. “This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity. It is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs,” a statement carried by the official Emirates News Agency said.

So far, OPEC+ members have not publicly responded to the UAE’s exit, making its absence from the latest statement notable. The decision to raise output came after a virtual meeting of member countries as the group attempts to maintain stability amid ongoing geopolitical tensions.