Seven OPEC Members to Add 188,000 bpd in June

Seven OPEC producers-Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman-agreed to increase output by 188,000 barrels per day beginning in June after the United Arab Emirates left the organization on May 1. The group said the adjustment was made “in their collective commitment to support oil market stability.” The June boost is slightly smaller than the 206,000 barrels per day those same members added in May and does not include any contribution from the UAE.

Global supply remains constrained. The Strait of Hormuz, a key route for oil and gas shipments, has been blocked for weeks, restricting flows. Oil markets eased on Friday after Iran transmitted a new proposal through mediators in Pakistan that raised hopes the waterway could reopen. U.S. crude fell about 3% to close at $101.94 per barrel, while Brent dropped nearly 2% to $108.17; both benchmarks are roughly 78% higher than at the start of the year.

President Donald Trump told reporters he had heard “about the general outline of a potential deal with Iran” but was waiting for specific details, and warned that military strikes could resume if Tehran did not follow through on any commitments. Tehran’s proposal, according to a senior Iranian official, would reopen the strait and lift the U.S. blockade of Iranian ports while postponing talks on the country’s nuclear program.

The UAE ended nearly 60 years of membership after a government review of its production strategy and capabilities. Abu Dhabi’s Energy Ministry said leaving OPEC served national interests. By February, the UAE had become the group’s third-largest producer, behind Saudi Arabia and Iraq.

Gulf Cooperation Council countries have built large sovereign wealth funds managing an estimated $4 trillion to $6 trillion in assets. Those funds invested more than $120 billion last year, with the United States receiving the largest share. Disruptions to energy exports, a halt in tourism and higher defense and reconstruction spending have strained regional budgets and could reduce the amount of capital those funds send abroad.

The seven-nation output adjustment follows a broader production framework set in April 2023, when several members agreed on phased changes to stabilize markets. With the UAE no longer participating in coordinated increases, the remaining producers are adjusting volumes on a narrower basis while monitoring developments in the Strait of Hormuz and diplomatic talks that could affect supply routes and global prices.