Positive Outlook: Eight OPEC+ Nations To Increase Oil Production From May 2025

The eight OPEC+ nations, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, convened virtually on 3 April 2025. They assessed global market conditions and future prospects. These countries had previously announced voluntary production adjustments in April and November 2023.

In accordance with the decision from 5 December 2024, reaffirmed on 3 March 2025, these countries will begin a gradual return of the 2.2 million barrels per day adjustments starting from 1 April 2025. In May 2025, they plan to implement a production adjustment of 411 thousand barrels per day.

This adjustment includes the increment initially planned for May plus two additional monthly increments. The flexibility to pause or reverse these increases remains based on changing market conditions. This approach aims to maintain oil market stability.

The eight OPEC+ nations emphasized that this measure offers an opportunity to speed up compensation efforts. They are committed to the voluntary production adjustments agreed upon at the 53rd JMMC meeting on 3 April 2024.

The countries also confirmed their intention to fully compensate any overproduction since January 2024. Updated front-loaded compensation plans will be submitted to the OPEC Secretariat by 15 April 2025 and will be available on the Secretariat's website.

Monthly meetings will be held by these nations to evaluate market conditions, conformity, and compensation efforts. The next meeting is scheduled for the 5th of May to determine production levels for June.

This strategic approach allows OPEC+ members to adapt their production in response to evolving market dynamics while supporting overall stability in the oil sector.

With inputs from WAM