OPEC+ Decides to Increase Oil Production in May and Subsequent Months

OPEC+ Agrees to Increase Oil Production as Market Dynamics Shift

During their meeting on Thursday, the member countries of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to increase oil production for the month of May, with further increases anticipated in the following months. Eight countries participating in OPEC+’s production cuts agreed to adjust their output by 411,000 barrels per day in May, which equates to three consecutive monthly increases.

Stable Production Policy Despite Adjustments

A key meeting involving eight influential OPEC+ ministers is expected to uphold the current production policy, which calls for gradual increases starting from April. According to a source within the group, no major changes to this policy are expected in the immediate future.

This decision is part of a strategy aimed at gradually easing the production cut of 2.2 million barrels per day that took effect at the beginning of the month. The plan is designed to stabilize the market while addressing rising demand.

Dissatisfaction Over Kazakhstan’s Excess Production

However, a point of contention has emerged regarding Kazakhstan’s record oil production, which has led to dissatisfaction among several OPEC+ members. OPEC+ has urged Kazakhstan, as well as other member countries, to reduce their output to offset the surplus. This situation highlights the complex dynamics within the group, where certain members have expressed concerns about the balance of the global oil market.

Additional Production Forecasts

Furthermore, eight OPEC+ member countries are expected to increase their production by 135,000 barrels per day in May. These increases are part of a comprehensive plan to ease current restrictions and support adequate supply in the market while maintaining efforts to bolster oil prices.

Extended Production Cuts

OPEC+ continues to uphold other production cuts totaling 3.65 million barrels per day. These reductions will remain in effect until the end of next year, aiming to support market prices and address global economic and geopolitical uncertainties.

Overall, these decisions underscore the group’s commitment to maintaining a balance between supply and demand while gradually adjusting production levels to respond to market developments.