Eight key members of the OPEC+ alliance agreed to a measured increase in oil production from May, underscoring a cautious approach to easing supply curbs while flagging risks to global energy infrastructure and shipping routes.
The group comprising Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman said after a virtual meeting on April 5 that they would raise output by 206,000 barrels a day next month.
The increase forms part of a gradual unwinding of the 1.65 million barrels a day in voluntary cuts first announced in April 2023. The alliance stressed that the return of barrels would remain flexible and could be paused or reversed depending on market conditions.
The move reflects a balancing act for OPEC+ as it seeks to stabilize crude prices without triggering oversupply, at a time when demand signals remain mixed and geopolitical tensions continue to cloud the outlook.
Under the May adjustment, Saudi Arabia and Russia will account for the largest increases, each adding 62,000 barrels a day. Iraq is set to raise output by 26,000 barrels, while the UAE and Kuwait will contribute 18,000 and 16,000 barrels respectively. Smaller increments will come from Kazakhstan, Algeria and Oman.
The producers reiterated their commitment to the broader Declaration of Cooperation framework and said compliance with agreed quotas would be closely monitored by the Joint Ministerial Monitoring Committee. They also pledged to compensate for any overproduction since January 2024, a longstanding point of tension within the alliance.
Beyond supply management, the group highlighted growing concerns over energy security. Members warned that attacks on oil infrastructure and disruptions to key maritime routes risk amplifying market volatility and tightening supply.
They emphasized that restoring damaged facilities can be both costly and time-consuming, with lasting implications for global output. The statement also underscored the importance of safeguarding shipping lanes to ensure uninterrupted crude flows.
The countries said recent efforts by some producers to reroute exports had helped cushion the market from sharper disruptions. OPEC+ will continue to meet monthly to assess market conditions, with the next review scheduled for May 3.
