OPEC+ Producers Agree to Raise Oil Output by 188,000 Barrels a Day Starting in June

 
Saudi Arabia, Russia and other major oil producers have agreed to modestly increase crude output starting in June.
 
Yonhap reported on the 3rd, citing an OPEC announcement, that seven OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman — agreed in a joint statement to raise production.
 
The countries said they will implement production adjustments totaling 188,000 barrels a day from June under the “additional voluntary production adjustments” plan announced in April 2023, calling it part of a joint effort to stabilize the oil market.
 
They said it is important to keep “full flexibility” to increase, pause or reverse the voluntary adjustments while maintaining a cautious approach to market stability.
 
Figures attached to the statement show Saudi Arabia and Russia could each raise output by 62,000 barrels a day from June. Iraq could increase by 26,000 barrels a day, Kuwait by 16,000, Kazakhstan by 10,000, Algeria by 6,000 and Oman by 5,000.
 
The countries said they will meet June 7 to discuss oil market conditions and compliance with production cuts, and plan to hold regular monthly meetings afterward.
 
The statement did not mention it, but markets have viewed the move as a response to the United Arab Emirates’ recent declaration that it would leave OPEC and OPEC+. The UAE previously announced it would quit the “oil producers’ cartel” amid Middle East tensions and increased volatility in international oil prices, and signaled it could raise output.
 
Saudi-led OPEC and OPEC+ have managed oil prices by limiting production through country-by-country quotas. The latest step is seen as a buffer that effectively allows more output to prevent further departures after the UAE.