Saudi Arabia, Russia and other major oil-producing nations have agreed to slightly increase crude oil output from June, ahead of schedule.
According to the Organization of the Petroleum Exporting Countries (OPEC) on Saturday, seven OPEC+ member states — Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman — announced the decision in a joint statement. OPEC+ is a coalition of OPEC and other oil-producing nations.
Regarding the "additional voluntary production adjustment" policy announced in April 2023, the countries said they would implement a production adjustment of 188,000 barrels per day starting in June, describing the move as "part of joint efforts to stabilize the oil market."
The countries also said they would hold a meeting on June 7 to discuss the crude oil market and compliance with output cuts, adding that they plan to hold monthly meetings going forward.
The decision is interpreted as a response to the United Arab Emirates' recent abrupt announcement that it would withdraw from OPEC and OPEC+. The Saudi-led OPEC and OPEC+ have managed oil prices by restricting output through quotas assigned to member states, but the bloc appears to have effectively permitted increased production to prevent a chain of withdrawals by other member states following the UAE.
