OPEC+ set for another oil output quota hike despite Hormuz closure, sources say

OPEC+ has agreed in principle to raise oil output targets in June, two sources familiar with the group's thinking said on Saturday, but the increase will remain largely on paper as long as the U.S.-Iran war continues to disrupt Gulf oil supplies. Seven OPEC+ countries have an agreement in principle to raise oil output targets by about 188,000 barrels per day in June, the third consecutive monthly increase, pressing on with plans despite the war and the departure of the United Arab Emirates from the group this week, the sources said ahead of a policy meeting on Sunday. The seven members meeting on Sunday are Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. With the UAE leaving, OPEC+ includes 21 members, including Iran, but in recent years, only the seven nations plus the UAE have been involved in monthly production decisions. The Iran war, which began on Feb. 28, and the resulting closure of Hormuz have throttled exports from OPEC+ members Saudi Arabia, Iraq, and Kuwait, as well as the UAE. Before the conflict, these producers were the only countries in the group that could increase production. Iran, also an OPEC+ member though not among the seven meeting on Sunday, has seen its own exports cut by a U.S. blockade imposed in April. …