OPEC+ ANNOUNCES INCREASE IN OIL PRODUCTION STARTING APRIL

The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, announced on Sunday that they will increase oil production by 206,000 barrels per day (bpd) starting in April.

The decision came after a virtual meeting of member nations, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, who reviewed global market conditions and the economic outlook, according to an OPEC statement.

“The eight participating countries agreed to resume the gradual reversal of the 1.65 million bpd in additional voluntary cuts announced in April 2023, implementing a production increase of 206,000 bpd,” the statement read.

OPEC added that the global economic outlook remains stable and current market fundamentals are strong, reflected in low oil inventories. The 1.65 million bpd in voluntary reductions will be phased back gradually, either partially or fully, depending on evolving market conditions.

The statement noted that the eight countries are scheduled to meet on April 5 to make further decisions regarding production adjustments. The April increase will conclude the planned OPEC production hikes for the first quarter of 2026.

The original voluntary cuts, announced in April 2023, were extended through the end of 2026. The OPEC+ announcement comes amid heightened geopolitical tensions following U.S. and Israeli strikes on Iran, raising concerns over potential supply disruptions in the Middle East, particularly around the Strait of Hormuz. Analysts expect oil prices to surge as a result of the decision.