Opec+ sticks to script with 432,000 b/d May quota hike

Opec+ sticks to script with 432,000 b/d May quota hike

London, 31 March (Argus) — The Opec+ coalition has agreed a 432,000 b/d increase in its combined crude output target for May, delegates said, resisting pressure from outside the group to raise production at a faster rate to help ease supply concerns stemming from the Russia-Ukraine conflict.

May's quota hike is slightly larger than the 400,000 b/d monthly increases implemented since last summer. This is because five members of the group will have higher baseline production levels from May.

Today's Opec+ ministerial meeting comes against a backdrop of increased political pressure on the group to rethink its approach in light of the risk to Russian supply from international sanctions. Earlier this month, the IEA said at least 3mn b/d of Russian oil output could be forced offline as early as April. Leading trading firms Vitol, Mercuria, Trafigura and Gunvor project a similar-sized decline, of 2mn-3mn b/d.

The US has already banned Russian oil imports, and the UK has pledged to phase them out by the end of the year. More recently, Poland said it plans to stop importing Russian oil by the end of 2022 and called on other EU countries to follow suit.

Opec+ ministers have repeatedly defended their output policy, arguing that