OPEC+ INCREASES OIL OUTPUT BY 206,000 BPD AMID TENSIONS IN MIDDLE EAST

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BY JENN NOMAMIUKOR

OPEC and its partner countries have decided to increase oil production by 206,000 barrels each day starting in April.

This decision happens as political conflicts in the Middle East continue to grow, and the price of crude oil has gone up to $79 per barrel.

In a statement, OPEC said the decision was made by eight member countries after a meeting on Sunday.

The eight countries are Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman.

“The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 1 March 2026, to review global market conditions and outlook,” the statement reads.

“In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, the eight participating countries decided to resume the unwinding of the 1.65 million barrels per day of additional voluntary adjustments announced in April 2023 and agreed on a production adjustment of 206 thousand barrels per day.”

According to the oil cartel, the adjustment will be implemented in April 2026.

The international organization said the 1.65 million bpd may be “returned in part or in full subject to evolving market conditions and in a gradual manner”.

OPEC said the countries will continue to closely monitor and evaluate market conditions, emphasizing the need to take a cautious approach as part of their ongoing efforts to maintain market stability.

According to the oil alliance, the countries also retained full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, “including reversing the previously implemented voluntary adjustments of the 2.2 million bpd announced in November 2023″.

“The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation,” the group said.

The oil alliance said the nations also confirmed their intention to fully compensate for any overproduced volume since January 2024.

According to the statement, the eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation.

The next meeting was slated for April 5.