OPEC+ set to agree another oil output hike without UAE, sources say

By Alex Lawler and Dmitry Zhdannikov

LONDON, April 29 (Reuters) – Seven members of OPEC+ are likely to agree another increase in oil output targets when they meet on Sunday, three sources with knowledge of discussions told Reuters, lowering the size of the increase to take into account the United Arab Emirates’ exit from the producer group.

However, few of the producers can actually boost production due to the effective closure of the Strait of Hormuz to shipping due to the U.S.-Israeli war with Iran.

Before Tuesday’s surprise announcement from the UAE that it was leaving OPEC and OPEC+ from May 1,  eight members of the wider group had been expected to proceed with a hike of 206,000 barrels per day (bpd) to their output targets in June, repeating similar increases for May and April, OPEC+ sources said.

Now, they are likely to proceed with a similar increase removing the UAE’s share of 18,000 bpd, the sources said. All sources spoke on condition of anonymity, and one said the group has yet to take a decision ahead of the meeting.

OPEC did not immediately respond to a request for comment sent after business hours on Wednesday.

(Reporting by Alex Lawler, Ahmad Ghaddar and Dmitry Zhdannikov, edting by Kirsten Donovan)