OPEC+ adjusts output by 206,000 bpd from May

The eight OPEC+ countries, namely the United Arab Emirates, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and the Sultanate of Oman, announced an adjustment to oil production levels on Sunday, reaffirming their joint commitment to supporting stability in global oil markets.

The announcement followed a virtual meeting to review global market conditions and future outlook, as part of ongoing monitoring of the additional voluntary adjustments previously announced in April and November 2023.

The participating countries decided to implement a production adjustment of 206,000 barrels per day (bpd) within the framework of the 1.65 million barrels per day additional voluntary adjustments announced in April 2023. The adjustment will take effect from May 2026.

The countries stated that the total 1.65 million bpd may be returned partially or fully to the market depending on evolving conditions and in a gradual manner, noting their continued close monitoring and assessment of market developments.

They emphasised the importance of adopting a cautious approach and maintaining full flexibility regarding increasing, pausing, or reversing the gradual phase-out of voluntary production adjustments, including the possibility of reversing the previously announced 2.2 million bpd voluntary cuts introduced in November 2023.

The eight countries noted the measure provides an opportunity to accelerate compensation for excess production, reaffirming their collective commitment to full compliance with the Declaration of Cooperation, including the additional voluntary adjustments monitored by the Joint Ministerial Monitoring Committee.

They also confirmed their intention to fully compensate for any excess production since January 2024.

The countries reiterated the importance of safeguarding international maritime routes to ensure uninterrupted energy supplies, as highlighted in the 65th Joint Ministerial Monitoring Committee meeting.

They expressed concern over attacks targeting energy infrastructure, noting that restoring damaged assets to full production capacity requires significant time and cost, which impacts supply availability.

The countries stressed that any actions undermining energy supply security - whether through attacks on infrastructure or disruption of maritime routes - contribute to increased market volatility and weaken collective efforts under the Declaration of Cooperation to support market stability for producers, consumers, and the global economy.

They also commended initiatives by some participating countries to ensure supply continuity, particularly through alternative export routes, which have helped reduce market volatility.

The eight countries announced that they will hold monthly meetings to review market conditions, compliance, and compensation, with the next meeting scheduled for May 3.