Saudi Gazette report

RIYADH — The meeting of OPEC+ alliance has decided on Monday to proceed with a planned April oil output increase. “This gradual increase may be paused or reversed subject to market conditions and this flexibility will allow the group to continue to support oil market stability,” OPEC said in a statement following the meeting of eight OPEC+ countries via videoconference. The meeting reviewed global market conditions and the future outlook.

The increase, which is estimated at 138,000 barrels per day, is the first since 2022 from OPEC+ countries, which include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.

During the meeting, the OPEC+ countries reaffirmed their commitment to market stability amid a positive outlook for oil markets. These countries had announced additional voluntary adjustments in April and November 2023.

Taking into account the healthy market fundamentals and the positive market outlook, the meeting re-affirmed their decision agreed upon on December 5, 2024, to proceed with a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting on 1 April, 2025, while remaining adaptable to evolving conditions.

Accordingly, this gradual increase may be paused or reversed subject to market conditions. This flexibility will allow the group to continue to support oil market stability.

Furthermore, the eight countries reiterated their collective commitment to full conformity with the additional voluntary production adjustments as agreed under the 53rd JMMC (Joint Ministerial Monitoring Committee) meeting held on April 3, 2024.

The OPEC+ countries also confirmed their intention to fully compensate for any overproduced volumes since January 2024, in accordance with the compensation plans submitted to the OPEC Secretariat, ensuring that all compensations are completed by June 2026.

The countries with overproduced volumes have also agreed to frontload their compensation plans, so that more of the overproduced volumes are compensated in the earlier months of the compensation period.