Overview
- The producer alliance that sets oil output targets raised June quotas by 188,000 barrels per day on Sunday after the UAE quit, according to its communiqué.
- The statement omitted any mention of the UAE, which analysts see as an effort to show continuity despite the split.
- Analysts expect little added supply because Gulf exports are blocked at the Strait of Hormuz, limiting what members can ship.
- Output by countries bound by quotas was 27.68 million barrels per day in March versus 36.73 million allowed, a shortfall of about 9 million, Rystad said.
- Outside the pact, Abu Dhabi’s Adnoc pledged $55 billion for new projects and is targeting 5 million barrels per day of capacity by 2027, raising the risk of more rivalry and weaker discipline in the group.