New Delhi: Due to rising tensions in the Middle East, a crisis regarding the global crude oil trade looms over nations worldwide, raising the likelihood of increased prices for petrol and diesel. Seven member nations of OPEC+, the organisation comprising crude oil-exporting countries, are set to make a decision regarding production quotas today, Sunday.
Key Highlights
🛢️ Crisis At A Glance
| Parameter | Details |
|---|---|
| 📅 Meeting Date | Today — Sunday, May 3, 2026 |
| 🏛️ Organisation | OPEC+ |
| 🎯 Agenda | Production quota decision |
| 🌍 Historic first | First meeting after the UAE’s exit |
| 🛢️ Current crude price | ~$126/barrel |
| 🚢 Key crisis | Strait of Hormuz disruption |
| 📊 Possible decision | Increase production by 188,000 barrels/day |
🌍 Countries Participating in Today’s Meeting
| Country | Role in OPEC+ |
|---|---|
| 🇸🇦 Saudi Arabia | Largest OPEC producer — de facto leader |
| 🇷🇺 Russia | 2nd largest OPEC+ producer |
| 🇮🇶 Iraq | Major Gulf producer |
| 🇰🇿 Kazakhstan | Central Asian producer |
| 🇰🇼 Kuwait | Gulf producer |
| 🇩🇿 Algeria | North African producer |
| 🇴🇲 Oman | Gulf producer |
| 🇦🇪 UAE | ❌ Withdrawn — NOT participating |
This marks the first OPEC+ meeting following the UAE’s decision to withdraw from the group. The UAE had previously announced its decision to exit the alliance on May 1st. Since then, crude oil prices have witnessed a significant surge. Following the conflict involving Iran, the supply of crude oil became severely constrained, triggering a sharp spike in prices. The announcement of the UAE’s withdrawal from OPEC+ served to add fuel to the fire. Consequently, crude oil prices soared to reach $126 per barrel.
Which Countries Will Participate in the Meeting?
According to AFP, countries such as Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, and Saudi Arabia are slated to participate in this meeting. A report suggests that a decision to increase daily crude oil production by 188,000 barrels could potentially be taken during the meeting.
According to experts, the collective production of OPEC+ nations fell to 27.68 million barrels in March. The monthly quota stood at 36.73 million barrels, resulting in a shortfall of approximately 9 million barrels between the allocated quota and actual production. In fact, the disruption of the Strait of Hormuz shipping lane has had the most severe impact on Kuwait, Iraq, Saudi Arabia, and the UAE. Notably, the UAE has already withdrawn from the OPEC+ alliance.
What Will Be the Impact of the UAE’s Withdrawal?
Did you know that Iran remains a member of OPEC+? However, production quotas do not apply to Iran. Among the member nations, Russia has benefited the most from the disruption of the Strait of Hormuz.
Russia is regarded as the second-largest producer of crude oil among the OPEC+ nations. However, due to the war in Ukraine, it is unable to produce oil at a level equal to its current quota. Amina Bakr, an analyst at Kpler, states that the UAE’s departure holds significant importance for OPEC.
Understanding the Significance of This Meeting
This will be the first meeting of the OPEC+ nations following the UAE’s withdrawal. A major decision regarding an increase in production quotas could be taken during this meeting. Meanwhile, global oil supplies remain tight due to the closure of the Strait of Hormuz; approximately 20 per cent of the world’s oil passes through this route.
