OPEC+ to raise crude oil output by 411,000 b/d in May

Eight key members of the OPEC+ grouping on Thursday announced a cumulative crude oil output ramp up of 411,000 barrels per day (b/d).

The eight OPEC+ countries — which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman — met virtually on April 3, 2025, to review global market conditions and outlook, OPEC said.

The development comes on a day the US slapped reciprocal tariffs on trading partners sending the global economy in a tailspin stoking fears of a recession in several countries.

Both these developments have impacted international crude oil prices with Brent slipping below $70 a barrel by evening (India time), while the WTI fell to $66.53 a barrel.

“In view of the continuing healthy market fundamentals and the positive market outlook, and in accordance with the decision agreed upon on December 5, 2024, subsequently reaffirmed on March 3, 2025, to start a gradual and flexible return of the 2.2 million barrels per day (mb/d) voluntary adjustments starting from April 1, 2025, the eight participating countries will implement a production adjustment of 411,000 b/d, equivalent to three monthly increments, in May 2025,” OPEC said.

This comprises the increment originally planned for May in addition to two monthly increments. The gradual increases may be paused or reversed subject to evolving market conditions, it added.

This flexibility will allow the group to continue to support oil market stability. The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation.

“The eight countries reaffirmed their commitment to the voluntary production adjustments agreed at the 53rd JMMC meeting on April 3, 2024. They also confirmed their intention to fully compensate any overproduced volume since January 2024 and to submit updated front-loaded compensation plans to the OPEC Secretariat by April 15, 2025 which will be posted on the Secretariat’s website,” it said.

The eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation. The eight countries will meet on the 5th of May to decide on June production levels.

Published on April 3, 2025