The OPEC and its allies under OPEC+ don agree to increase oil output by 188,000 barrels per day for June and, as e be, the move aim to stabilise global oil market amid rising tension. Meanwhile, the decision come shortly after United Arab Emirates exit the group.
According to statement from the oil alliance, the new production level slightly lower than May increase of 206,000 barrels per day.
Furthermore, countries wey go benefit from the adjustment include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.
However, Nigeria, wey get quota of about 1.5 million barrels per day, still dey struggle to meet its production target.
In addition, OPEC explain say the decision na part of collective effort to maintain stability in the global oil market.
Meanwhile, global oil supply don face pressure since conflict involving Iran affect shipment through the Strait of Hormuz, wey be major route for oil transport.
Moreover, oil prices slightly drop after reports say Iran submit peace proposal, raising hope for possible agreement with the United States.
At the close of trading, U.S. crude fall by about 3 per cent to $101.94 per barrel, while Brent crude drop nearly 2 per cent to $108.17.
On the other hand, uncertainty still remain as talks between Iran and the United States continue, with warning say conflict fit resume if agreement no reach.
Consequently, OPEC+ members go meet again on June 7 to review market situation and decide next steps.
As global energy market dey adjust, analysts say production decisions like this go continue to influence oil prices and supply worldwide.
