OPEC+ Agrees To Raise Oil Output By 188,000 Bpd From July

The Organization of Petroleum Exporting Countries (OPEC) and its allies have agreed to increase oil production by 188,000 barrels per day (bpd) from July to support oil market stability.

OPEC said the decision was reached during a virtual meeting of seven member countries that had previously implemented additional voluntary production adjustments in April and November 2023.

The countries include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.

In a statement on Sunday, OPEC said the meeting reviewed global market conditions and the outlook.

“In their collective commitment to support oil market stability, the seven participating countries decided to implement a production adjustment of 188,000 barrels per day from the additional voluntary adjustments announced in April 2023,” the statement said.

“This adjustment will be implemented in July 2026 as detailed in the table below. The additional voluntary adjustments announced in April 2023 may be returned in part or in full, subject to evolving market conditions and in a gradual manner.”

OPEC said the countries will continue to closely monitor and assess market conditions, emphasising the need for a cautious approach in ongoing efforts to support market stability.

The oil alliance added that participating countries retain full flexibility to increase, pause or reverse the phase-out of voluntary production adjustments, including reversing cuts announced in November 2023.

The seven OPEC+ countries also noted that the measure will provide an opportunity to accelerate compensation for previous overproduction.

“The seven countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments, which will be monitored by the Joint Ministerial Monitoring Committee (JMMC),” the group added.

The cartel further pledged to fully compensate for any overproduced volume since January 2024, adding that the compensation period will be extended until the end of December 2026.

According to the statement, the countries will hold monthly meetings to review market conditions, conformity and compensation.

OPEC said the next meeting will be held on July 5.