OPEC+ Stabilizes Oil Output Amid Downturn

OPEC+ is poised to agree on increasing oil output targets for the fourth time in as many months, amidst tensions affecting production levels. The US-Iran conflict and UAE's departure have resulted in significant production cuts among the group, averaging 33.19 million bpd in April compared to February.

OPEC+ is preparing to decide on Sunday to boost oil output targets for the fourth month in a row, according to three OPEC+ insiders. This comes despite the ongoing U.S. conflict with Iran, which continues to inhibit several group's members from ramping up production.

The escalating crisis, compounded by the UAE's exit from OPEC, has drastically cut oil flows through the critical Strait of Hormuz. The resulting supply crunch has left key members like Saudi Arabia struggling to meet customer demands fully since late February.

With figures showing a sharp decline from February's output of 42.77 million bpd to April's 33.19 million bpd, an increase of 188,000 bpd from July is expected. However, all decisions remained tentative as final discussions are set for Sunday, with no significant policy shifts anticipated during the full OPEC+ ministerial meeting.