The Organisation of the Petroleum Exporting Countries (OPEC+) has unveiled a new schedule for seven of its member nations to implement further oil output cuts.
This move aims to compensate for pumping above agreed levels, with monthly reductions ranging from 189,000 barrels per day (bpd) to 435,000bpd. These reductions are set to continue until June 2026.
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OPEC+, which includes OPEC members, Russia and other allies, has been reducing output by 5.85 million barrels per day (mbbl/d) since 2022 to support the market. This represents around 5.7% of global supply.
Despite these cuts, OPEC+ plans to proceed with an oil output increase in April, the first since 2022, following pressure from US President Donald Trump to lower prices.
Eight OPEC+ members including Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia and the UAE, agreed in a virtual meeting to proceed with the April increase.
Under the revised plan, Iraq will contribute significantly to the compensation cuts, followed by Kazakhstan and Russia.
Saudi Arabia, a key player in the OPEC+ deal, will make smaller compensation cuts of 6,000–15,000bpd over three months.
Kazakhstan, meanwhile, has been producing at record levels, with US oil major Chevron expanding output at the Tengiz oilfield.
In February, Kazakhstan’s production increased by 198,000bpd to 1.77mbbl/d, exceeding its OPEC+ quota by at least 300,000bpd.
According to the latest OPEC report, the collective output of OPEC+ rose by 363,000bpd to 41.01mbbl/d.
Members of OPEC+ had expressed concern over a potential resurgence in US oil production under Trump’s presidency.
This could threaten the group’s market share and hinder its efforts to control oil prices.
