Jakarta, CNBC Indonesia - The Organization of Petroleum Exporting\nCountries and its allies, or OPEC+, is reportedly set to agree in\nprinciple to raise its oil production target again in June. However,\nthis step is expected not to have a real impact while the United States\n(US) and Iran conflict continues to disrupt supplies from the Gulf\nregion.<\/p>\n
Citing a Reuters report, two sources familiar with the internal\ndiscussions stated that seven OPEC+ member countries have agreed to\nincrease production by around 188,000 barrels per day. This marks the\nthird consecutive monthly increase.<\/p>\n
\u201cSeven countries have agreed in principle to raise the oil production\ntarget by around 188,000 barrels per day in June,\u201d the source said,\nquoted on Sunday (3\/5\/2026).<\/p>\n
The seven countries involved in this decision are Saudi Arabia, Iraq,\nKuwait, Algeria, Kazakhstan, Russia, and Oman. Meanwhile, the United\nArab Emirates (UAE) officially left the group in early May, leaving\nOPEC+ with 21 member countries.<\/p>\n
Despite the additional quota, the actual increase in production is\nexpected to remain limited. This is because the vital Strait of Hormuz\nroute, which previously handled nearly 20% of global oil and liquefied\nnatural gas (LNG) shipments, is still affected by the conflict.<\/p>\n
The source emphasised that the current production increase is more\nsymbolic until energy distribution returns to normal. \u201cThis increase\nwill remain on paper until the Strait of Hormuz is reopened and supplies\nfrom the Gulf flow smoothly again,\u201d it said.<\/p>\n
Several energy industry players also estimate that it will take weeks\nto months for oil shipment flows to fully recover, even after the route\nis reopened.<\/p>\n
Amid this supply disruption, global oil prices have surged sharply.\nThis week, prices briefly broke through US$125 per barrel, or around\nRp2.12 million (assuming an exchange rate of Rp17,000 per US dollar),\nthe highest level in the past four years.<\/p>\n
This price surge has triggered market concerns over a potential\nenergy crisis, including jet fuel shortages in the next one to two\nmonths and pressure on global inflation.<\/p>\n
Nevertheless, OPEC+\u2019s decision to proceed with raising the production\ntarget demonstrates a \u201cbusiness as usual\u201d approach amid geopolitical\nuncertainty.<\/p>\n
\u201cThis decision indicates that OPEC+ is ready to increase supplies\nafter the war ends,\u201d another source said.<\/p>\n
For context, OPEC+ crude oil production averaged 35.06 million\nbarrels per day in March. This figure fell by 7.70 million barrels per\nday compared to February, mainly due to reduced production in Iraq and\nSaudi Arabia from limited exports.<\/p>\n
Outside the Gulf region, Russia also experienced a production decline\nafter its energy infrastructure was impacted by Ukrainian drone\nattacks.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/opec-prepares-to-boost-oil-production-will-prices-fall-1777787526", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }