OPEC+ convenes meeting following the withdrawal of the United Arab Emirates

OPEC+ is holding a virtual meeting to discuss oil production quotas following the unexpected withdrawal of the United Arab Emirates from the group announced last Tuesday. The group, consisting of OPEC members and ten allied nations, has not issued an official comment regarding the departure of the UAE, a key member. Analysts, including Arne Lohmann Rasmussen from Global Risk Management, suggest that Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman are expected to increase production quotas by approximately 188,000 barrels per day. This proposed increase mirrors similar adjustments made in March and April, though the UAE's share of the output growth is now excluded. Despite these planned increases, experts caution that actual production may not rise as expected. Current unutilized capacity is largely located in Gulf nations whose exports are currently hampered by the blockage of the Strait of Hormuz. The blockade was reportedly imposed by Iran following the outbreak of conflict in the Middle East. Consequently, the meeting's press release is being watched closely to see how the organization addresses both the output quotas and the sudden shift in membership.