Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman – members of OPEC – decided to fast-track their output hike plan, approving a 411,000 barrels per day (bpd) increase in May, equivalent to three months’ worth of planned increments.
The countries reaffirmed their commitment to market stability, citing a healthier oil market outlook, and agreed to raise production, according to an OPEC statement following an online meeting on Thursday
The eight countries had previously announced additional voluntary production adjustments in April and November 2023.
Citing ‘continuing healthy market fundamentals and the positive market outlook,’ OPEC stated that the eight countries will implement a production increase of 411,000 bpd in May, which includes three monthly increments. ‘This comprises the increment originally planned for May in addition to two monthly increments,’ OPEC said.
The May hike is part of an ongoing plan to gradually unwind the 2.2 million bpd output cut, which began this month.
The statement emphasized that these incremental production increases could be paused or reversed based on evolving market conditions. This flexibility allows the group to continue supporting oil market stability and provides an opportunity for participating countries to accelerate their compensation process.
The eight OPEC+ countries will hold monthly meetings to assess market conditions, compliance, and compensation efforts, with the next meeting set for May 5 to decide on production levels for June.
