OPEC+ Agrees to Increase Oil Production more than Expected in May

The OPEC+ members, who had previously announced additional voluntary adjustments in April and November 2023, met on Saturday to review the oil market situation and future prospects, agreeing to increase oil production more than expected in May.

According to the statement, this is equivalent to three monthly increases. These gradual increases can be paused or reversed depending on market developments. This flexibility allows countries to continue supporting oil market stability.

The group has agreed to increase oil production by 411,000 barrels per day starting next June, accelerating the resumption of halted production but potentially exacerbating the decline in crude prices, according to a statement issued by the alliance today.

Member countries also indicated that this measure will allow participating countries to accelerate the process of compensating for previous periods.

The eight countries will hold monthly meetings to review market conditions, compliance, and compensation mechanisms. A meeting is scheduled for June 1 to set production levels for July.

The members included Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and the Sultanate of Oman.