OPEC+ June production quotas will increase by approximately 188k barrels per day, and the market still expects a significant rise in oil prices.

ME News Report, May 2nd (UTC+8), sources reveal that although the United Arab Emirates has withdrawn, seven countries within OPEC+ have in principle reached an agreement to increase oil production targets by about 188k barrels per day in June. The increase is similar to the 206k barrels per day (excluding the UAE’s share) from last month. This decision indicates that OPEC+ is proceeding with business as usual. These seven OPEC+ member countries plan to hold an online meeting on Sunday. Currently, due to the war between the US and Israel affecting Iran and causing most shipping through the Strait of Hormuz to be disrupted, the disruptions to OPEC oil-producing countries are much greater than the organization’s agreed production targets. Therefore, the current increase in production is largely symbolic. The UAE previously unexpectedly announced its withdrawal from OPEC and OPEC+ starting May 1st. According to PolyBeats monitoring, on the prediction market Polymarket, the probability that “WTI crude oil’s single-day closing price” will reach $110 is 75%, $120 is 45%, and $130 is 22%, indicating that the market still expects oil prices to rise sharply. (Source: BlockBeats)