Saudi, Russia, 6 Others Agree to Raise Crude Oil Output Next Month

Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually to review global market conditions and decided to raise collective output by 411,000 barrels per day, starting in May.

The group was widely expected to implement an increase of just under 140,000 barrels per day next month.

The May hike agreed on Thursday is “equivalent to three monthly increments,” OPEC said in a statement, adding that “the gradual increases may be paused or reversed subject to evolving market conditions.”

The eight OPEC+ producers this month started gradually unwinding 2.2 million barrels per day of voluntary cuts undertaken independently from the production strategy of the broader 22-member OPEC+ alliance, which has roughly 3.66 million barrels per day of separate cuts in place until the end of 2026.

CNBC reported that the Thursday meeting was the first one attended by Mr Erlan Akkenzhenov, the new energy minister of Kazakhstan, which has struggled with producing above its assigned quota.

Without referencing individual countries like Nigeria, OPEC said in its Thursday statement that the May output hike will “provide an opportunity for the participating countries to accelerate their compensation” by way of additional production cuts in line with overproduction.

The Thursday decision was taken against the backdrop of broader market trouble triggered by sweeping tariffs on key trade partners unveiled on Wednesday by the administration of US President Donald Trump.

Mr Trump, who has been simultaneously championing higher US oil output, signed a reciprocal tariff policy on Wednesday.

The American President said his plan will set a 10 per cent baseline tariff across the board.

The plan imposes steep tariff rates on many countries, including 34 per cent on China, 20 per cent on the European Union, and Nigeria got 14 per cent.