Key insights
- OPEC+ is expected to proceed with a planned oil production increase in June, despite the UAE's exit. This suggests a stable supply outlook, potentially putting downward pressure on oil prices. Lower oil prices could translate to slightly lower inflation expectations and reduced energy costs for US consumers and businesses, a marginal negative for energy stocks.
Investing.com -- Seven OPEC+ members are leaning toward raising oil production targets by around 188,000 barrels per day in June, as the coalition presses ahead despite the United Arab Emirates’ surprise departure, Reuters reported on Saturday, citing sources familiar with the matter.
The planned increase is broadly in line with last month’s hike of 206,000 bpd, adjusted to reflect the UAE’s share following its unexpected announcement this week that it would exit the group effective May 1, the report said. The decision signals a business-as-usual approach from the remaining members.
The seven countries are scheduled to meet online on Sunday.