New Delhi, May 3 (IANS). Amid tensions in West Asia, OPEC Plus countries have decided to increase their oil production quota for June.
Several media reports said that seven OPEC Plus countries have agreed to increase crude oil production by 1.88 lakh barrels per day for the next month. However, this increase will be symbolic, because at present the Strait of Hormuz is closed due to the US-Iran war.
This would be the third consecutive monthly increase, despite the geopolitical crisis and the separation of the United Arab Emirates (UAE) from the grouping.
After the separation of UAE, OPEC Plus is left with 21 member countries including Iran.
However, only seven countries have participated in monthly production decisions. Due to the blockade, Iran’s exports are witnessing a huge decline.
Average crude oil production of all OPEC Plus members stood at 35.06 million barrels per day in March, down 7.70 million barrels per day from February.
Last week, the United Arab Emirates (UAE) announced its withdrawal from the OPEC and OPEC Plus cartel, which is being considered a major blow to the group of oil exporting countries led by Saudi Arabia. The UAE said the decision reflects its “long-term strategic and economic vision and evolving energy profile”.
This exit of the UAE is expected to weaken the oil cartel, at a time when the exports of the Persian Gulf countries have suffered huge losses due to the closure of the Strait of Hormuz by Iran. The UAE accounts for about 15 percent of OPEC’s oil exports.
According to multiple reports, Kuwait exported zero barrels of crude oil in April, the first time since Iraq’s occupation in 1991. This situation has arisen due to the blockade of the Strait of Hormuz.
Kuwait Petroleum Corp declared force majeure, affecting production of about 2 million barrels per day. Due to this blockade, Kuwaiti exports have come to a complete halt.
–IANS
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