OPEC+ decides to raise output by 188,000 bpd in June

The seven member countries of OPEC+, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, decided to raise production by 188,000 barrels per day (bpd) starting from June.

The move is part of the gradual unwinding of a voluntary cut totaling 1.65 million bpd announced in April 2023.

In a statement, OPEC+ said the additional voluntary adjustments announced in April 2023 may be partially or fully reversed, depending on market developments and in a gradual manner.

The seven countries will continue to closely monitor and assess market conditions. As part of ongoing efforts to support market stability, the members reaffirmed the importance of adopting a cautious approach and maintaining full flexibility to increase, pause, or reverse voluntary production adjustments, including those previously implemented and announced in November 2023.

OPEC+ also stated that this measure will provide an opportunity to accelerate the compensation process.

The seven countries reiterated their collective commitment to full conformity with the Declaration of Cooperation, including additional voluntary production adjustments, which will be monitored by the Joint Ministerial Monitoring Committee.

They also confirmed their intention to fully compensate for any overproduction since January 2024.

Further, the seven countries will hold monthly meetings to review market conditions, compliance, and compensation, with the next meeting scheduled for June 7.