Stock Markets April 29, 2026 03:33 PM

OPEC+ Poised to Raise Output Target Slightly as War Hampers Exports

Group expected to approve about 188,000 bpd increase while conflict and Strait of Hormuz closure curb shipments from key producers

By Priya Menon
OPEC+ Poised to Raise Output Target Slightly as War Hampers Exports

OPEC+ ministers are expected to endorse a modest rise in official output quotas at their Sunday meeting, increasing targets by roughly 188,000 barrels per day. The vote comes even as a recent U.S.-Israeli conflict with Iran and the closure of the Strait of Hormuz have sharply curtailed exports from several major producers. The move would mirror last month’s increase, adjusted for the United Arab Emirates’ scheduled exit from the group on May 1.

Key Points

  • OPEC+ is expected to approve a modest increase in official output quotas of about 188,000 barrels per day, reflecting last month’s rise adjusted for the UAE’s scheduled exit on May 1.
  • The U.S.-Israeli conflict with Iran, beginning on February 28, and the closure of the Strait of Hormuz have severely constrained exports from Saudi Arabia, Iraq, Kuwait, and the UAE, affecting crude availability.
  • Sectors impacted include the energy sector (producers and refiners) and maritime shipping, given export limitations and the importance of the Strait of Hormuz for oil transit.

OPEC+ delegates are set to approve a small upward adjustment to their production quotas at a scheduled meeting on Sunday, with the group likely to agree on an increase in the neighborhood of 188,000 barrels per day.

The planned rise closely resembles the previous month’s 206,000 bpd uplift, modified to reflect the departure of the United Arab Emirates - which is due to leave the grouping on May 1. Observers characterise the expected decision as signalling a business-as-usual approach by the producers.

That posture comes against a backdrop of significant export disruption. The recent conflict involving the U.S. and Israel with Iran, which began on February 28, and the ensuing closure of the Strait of Hormuz have sharply limited outbound shipments from a subset of OPEC+ members. The countries directly cited as affected by these export constraints are Saudi Arabia, Iraq, Kuwait, and the UAE. These four were previously among the few in the group positioned to boost output.

Sunday’s gathering will convene seven member states: Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. After the UAE’s exit, the broader OPEC+ alliance will still count 21 members, including Iran. In practice over recent years, only seven countries plus the UAE have been routinely involved in the monthly decisions on production levels.

The expected quota increase of about 188,000 bpd therefore represents a measured adjustment rather than a large reallocation of crude into global markets. The combination of constrained exports from several key producers and the reduced active participation in monthly decision-making frames the context for both the modest scale of the increase and the continued focus on maintaining established routines within the group.

Market participants and observers will be watching how the formal vote and any accompanying statements from the participating members address the mismatch between official quotas and the practical limits on exports caused by the conflict and the Strait of Hormuz closure.


Quick facts

  • Planned quota increase: approximately 188,000 barrels per day.
  • Previous month’s increase: 206,000 bpd (adjusted for UAE departure).
  • Meeting participants this Sunday: Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman.

Risks

  • Continued closure of the Strait of Hormuz - this has already severely limited exports from several OPEC+ members and poses ongoing shipping and supply risks for the energy sector.
  • Limited ability of several key producers to raise output - with Saudi Arabia, Iraq, Kuwait, and the UAE affected, the practical capacity to increase supply is constrained, which may limit the effectiveness of quota adjustments.
  • Narrow participation in monthly production decisions - in recent years only seven nations plus the UAE have actively participated in monthly decisions, leaving potential governance and coordination risks within the wider 21-member grouping.

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