Sources say that OPEC+ is likely to agree on another increase in oil production without UAE.

Three sources familiar with the discussions said that OPEC+ is likely to agree on a modest increase in the oil production quota for Sunday despite losing the lion's part of its exports as a result of the U.S./Israeli war against Iran and the departure of a key member - the United Arab Emirates. Sources said that the oil producing group is likely to agree on an increase in oil production targets of 188,000 barrels a day. The increase is the same as last month's hike of 206,000 bpd, minus the UAE share which leaves the group on May 1.

One of the sources stated that this decision would indicate that OPEC+ continues to do business as usual.

All sources spoke under the condition of anonymity. Another source said that the group had not yet made a decision before the meeting.

OPEC failed to respond immediately to a comment request sent Wednesday evening after hours of business. The Iran War, which began February 28, and the resulting closing of Hormuz have?slowed down exports for OPEC+ member Saudi Arabia, Iraq, Kuwait and the UAE. These producers were the only ones in the group that could increase production before the conflict.

OPEC reported earlier this month that the average crude oil production from all OPEC+ -members was 35.06 million bpd, down 7.70 millions bpd compared to February. Iraq and Saudi Arabia were most affected by export restrictions. Outside the Gulf, Russia also reduced output due to infrastructure damage caused by Ukrainian drone strikes.

Saudi Arabia, Iraq Kuwait, Kazakhstan, Russia and Oman are the seven members who will be meeting on Sunday. OPEC+ now includes 21 countries, including Iran. However, in recent years, only seven nations and the UAE were involved in the monthly production decisions. Reporting by Alex Lawler and Ahmad Ghaddar, edited by Kirsten Doovan

(source: Reuters)