The seven OPEC+ nations have increased their oil production quotas aimed at demonstrating their commitment to market stability.
The coalition, comprising Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, decided to reintroduce 188,000 barrels per day (bpd) back into the global supply starting in June. This figure represents a partial unwinding of the voluntary adjustments first established in April 2023.
The decision comes at a critical juncture for the global economy, as energy prices remain a central concern for inflation-wary nations.
The participating nations emphasised a cautious approach, noting that the phase-out of these cuts remains entirely flexible. Depending on how market conditions evolve, the group stands ready to pause or even reverse these increases to prevent a supply glut.
A focus of the meeting was full conformity. The seven nations reiterated their pledge to adhere strictly to the Declaration of Cooperation, with the Joint Ministerial Monitoring Committee (JMMC) tasked with keeping a close eye on output levels.
Notably, the group confirmed a firm intention to compensate for any overproduction that has occurred since January 2024, ensuring that no single member undermines the collective effort to support prices.
The move comes just after the UAE announced that it was leaving OPEC on May 1. The UAE is one of the coalition’s largest oil producers. The country had been resistant to output quotas despite its heavy investment in expanding its oil and gas production.
OPEC will meet again on June 7 to assess whether the market has successfully absorbed the increase or if further intervention is required to keep the global energy trade on an even keel.
