OPEC | Pakistan

Oil prices inched lower on Monday after Opec+ agreed to further increase its output targets from August, while exports from key producers via the Strait of Hormuz are recovering, potentially adding to global supplies. Brent crude futures fell 34 cents, or 0.47 per cent, to $71.78 a barrel by 0408 GMT after settling 0.45pc higher on Friday. US West Texas Intermediate crude was at $68.49 a barrel, down 20 cents, or 0.29pc. There was no settlement for WTI on Friday as US markets were closed ahead of the Independence Day holiday on Saturday. Both contracts were little changed last week, after mostly falling over the past few weeks, as investors kept a close eye on talks between the United States and Iran over the fate of shipping through the Strait of Hormuz while keeping tabs on the recovery in Gulf oil exports. “Coming off the US long weekend, traders are sitting tight and waiting to see whether US-Iran relations will be cordial or volatile this week,” said Tim Waterer, chief market analyst at KCM Trade. The Or...

Opec+ has agreed a further increase in output targets from August, the group said in a statement on Sunday, adding to global supply at a time when oil prices are falling due to the gradual reopening of the Strait of Hormuz for oil exports. The oil-producing group agreed during an online meeting to increase quotas by 188,000 barrels per day from August, on top of similar increases for June and July. The seven core members of Opec+, which groups Opec and allied producers including Russia, have hiked their output quotas from April through July by almost 800,000 bpd. Yet the increase has remained largely on paper because of the US-Israeli war on Iran, which closed the Strait of Hormuz to tanker traffic for some of the most important Opec+ members, including Saudi Arabia, Kuwait and Iraq. Production begins to recover Opec+ output fell to 33.13 million bpd in May, according to Opec data, from 42.77m bpd in February. It began to recover in June thanks to US efforts to help the United Arab Emirates (UAE) and other Op...

Opec+ agreed on Sunday on a fourth increase in its oil output targets in as many months, even though the US war with Iran is still preventing several of the group’s members from pumping more. The war has cut oil flows via the Strait of Hormuz, creating the world’s biggest-ever supply crisis as key Opec+ members, including Saudi Arabia, have been unable to supply customers in full since the end of February. The crisis for Opec+ deepened when the United Arab Emirates left the Organisation of the Petroleum Exporting Countries (Opec) after almost 60 years. Seven core members of Opec+, which groups Opec and allied producers including Russia, have increased their output quotas from April to June by almost 600,000 barrels per day. Impact of production target increase In reality, the group’s production has collapsed due to export cuts by Gulf members, averaging 33.19 million barrels per day in April compared with 42.77m in February, according to Opec figures. On Sunday, the seven members decided to increase targets b...

The United Arab Emirates’ shocking decision to leave Saudi-dominated Opec was not targeted at anyone, the UAE minister who heads the state oil giant said on Monday. The move aimed at focusing on national priorities and the UAE economy, said Sultan Al Jaber, who is CEO of state-owned Abu Dhabi National Oil Company (Adnoc) and the country’s industry and advanced technology minister. The decision, which took effect on Friday, followed months of tensions with neighbouring Saudi Arabia, the world’s top oil exporter and de facto leader of Opec, over foreign policy, oil output and the Middle East war, which has strained Gulf economies. A close partnership between the Gulf nations has turned into an open rivalry since a public falling out in December over Yemen, but the minister said the decision to withdraw from the oil cartel was not aimed at any nation. “The UAE’s sovereign decision to reposition itself within the global energy landscape, and to exit Opec and Opec+, is not a decision directed against anyone,” he t...

Opec+ agreed on Sunday on a modest oil output hike for June, an increase that will remain largely on paper as long as the US-Israeli war on Iran continues to disrupt Gulf oil supplies through the Strait of Hormuz. Seven Opec+ countries will raise oil output targets by 188,000 barrels per day in June, the third consecutive monthly increase, Opec+ said in a statement after an online meeting. The increase is the same as that agreed for May minus the share of the United Arab Emirates (UAE), which left the group on May 1. The move is designed to show the group is ready to raise supplies once the war stops and signals that Opec+ is pressing on with a business-as-usual approach despite the departure of the UAE from Opec+, sources associated with the alliance and analysts said. Opec+ is sending a two-layer message to the market: continuity despite the UAE’s exit, and control despite limited physical impact, said Jorge Leon, an analyst at Rystad and former Opec official. While output is increasing on paper, the real i...

The United Arab Emirates said on Tuesday it was quitting Opec, dealing a heavy blow to the oil producers’ group as an unprecedented energy crisis triggered by the Iran war exposes discord among Gulf nations. The stunning loss of the UAE, a longstanding Opec member, could create disarray and weaken the group, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas. UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters the decision was taken after a careful look at the regional power’s energy strategies. Asked whether the UAE consulted with Saudi Arabia, he said the UAE did not raise the issue with any other country. “This is a policy decision, it has been done after a careful look at current and future policies related to level of production,” said the energy minister. Mazrouei said the UAE’s move, in which it will leave Opec and Opec+ as of May 1, would not have a huge impact on the market because of the constraints in t...