Bloomberg reports this, noting that exports are recovering amid a surplus. Until recently, quota increases were purely theoretical: military operations had blocked the Strait of Hormuz and prevented Gulf countries from increasing exports and production.
However, when Tehran and Washington reached an interim agreement, Saudi Arabia and its neighbors began to resume shipments. This created a surplus in key Asian markets.
Unity within the Organization of the Petroleum Exporting Countries (OPEC) was threatened. Last month, Iraq, one of the cartel’s founding members, stated that it might ultimately leave OPEC if its production quota was not raised.
Revenue losses during the war have forced Baghdad to demand a significant increase in its quota from the organization. This campaign is unfolding against the backdrop of the alliance’s ongoing audit, which is assessing each member’s physical production capacity to set targets for 2027.
In May, the United Arab Emirates withdrew from the organization, dissatisfied with OPEC’s production caps. Abu Dhabi has significant spare capacity that has been idle due to the conflict. The emirate’s plans to ramp up production in the long term could increase pressure on prices and on its former alliance partners.
Follow our updates
