OPEC+ is expected to approve a plan to increase production in May, according to sources within the group who spoke to Reuters on Tuesday.
The OPEC+ alliance, which includes the 12 OPEC members—Saudi Arabia, Iraq, Iran, Kuwait, Venezuela, Gabon, Algeria, Equatorial Guinea, Libya, UAE, Congo, and Nigeria—and non-OPEC nations such as Russia, Brazil, Mexico, Kazakhstan, Oman, Azerbaijan, Bahrain, Malaysia, South Sudan, Brunei, and Sudan, is responsible for producing over 45 million barrels of crude oil per day, accounting for 59% of global oil production. This collective influence has been significant in influencing oil prices.
Eight members of OPEC+ are expected to increase production by an additional 135,000 barrels per day in May, sources told Reuters. However, this increase could primarily lead to improved compliance rather than a substantial boost in actual production.
Kazakhstan, for instance, has consistently exceeded its oil production quotas, even reaching a record high in March, despite pledges to improve. Russia, one of the larger members of the group, claimed full compliance with its quotas in January and February, but analysts often accuse the country of overproducing. Iraq, another chronic overproducer, has agreed to make compensatory cuts over the next year.
During the OPEC+ ministerial meeting in December, the group postponed the easing of its 2.2 million bpd production cuts to April 2025, and extended the timeline for fully unwinding these cuts to September 2026.
OPEC+ is set to meet virtually on Thursday, with the production hikes for May expected to be approved.
This news comes as the Brent crude oil benchmark is trading at $74.67—$16 lower than it was at this time last year.
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