OPEC+ Led by Saudi, Russia to Drive Over 60% of May Oil Output Hike

According to an Organization of the Petroleum Exporting Countries press release, the participating countries decided to implement a total production adjustment of 206 thousand barrels per day (kbd). The decision followed a virtual meeting of Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, held on April 5 to review global market conditions.

"In their collective commitment to support oil market stability, the eight participating countries decided to implement a production adjustment of 206 thousand barrels per day from the 1.65 million barrels per day additional voluntary adjustments announced in April 2023. The 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner," the release stated.

Saudi Arabia and Russia are each slated to contribute 62 kbd to the monthly increment. Other adjustments include 26 kbd from Iraq, 18 kbd from the UAE, 16 kbd from Kuwait, and 10 kbd from Kazakhstan. Algeria and Oman will add 6 kbd and 5 kbd, respectively, to their output.

Based on these increments, the required production for May 2026 is set at 10,228 kbd for Saudi Arabia and 9,699 kbd for Russia. Iraq's required production will reach 4,326 kbd, while the UAE and Kuwait are scheduled for 3,447 kbd and 2,612 kbd. Kazakhstan, Algeria, and Oman round out the group with requirements of 1,589 kbd, 983 kbd, and 821 kbd, respectively.

"The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023," the release noted.

Beyond production volumes, the group addressed the necessity of safeguarding energy supply chains and international shipping lanes. The eight countries expressed concern regarding attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability.

Accordingly, they stressed that "any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility and weaken the collective efforts under the DoC to support market stability for the benefit of producers, consumers, and the global economy."

The eight countries confirmed they will hold monthly meetings to monitor market conformity and compensation for any overproduced volumes recorded since early 2024. The next review is scheduled for May 3, 2026.

- ANI