OPEC+ fast-tracks oil production increase as crude prices drop 7%

Sharjah 24 – Reuters: Eight OPEC+ countries, including members of the Organization of the Petroleum Exporting Countries (OPEC) and Russia-led allies, unexpectedly agreed on Thursday to gradually ease oil production cuts. Starting in May, production will increase by 411,000 barrels per day, a move expected to further lower oil prices.

Oil prices decline further

Oil prices, which had already dropped more than 4% after US President Donald Trump's tariff announcement, continued to fall following the OPEC+ statement. Brent crude fell over 7%, dropping below $70 a barrel.

Gradual easing plan

OPEC+ had originally planned to increase oil production by 135,000 barrels per day in May 2025 as part of easing production cuts. However, following an online G8 meeting, OPEC decided to boost production by 411,000 barrels per day next month, citing strong market fundamentals and a positive outlook.

Production increase and future plans

The production increase in May is part of a gradual easing of the 2.2 million barrels per day production cut that began in April. OPEC+ countries, including Russia, Saudi Arabia, and others, have agreed to slowly reduce cuts over time. In addition, OPEC+ is maintaining further cuts of 3.65 million barrels per day until the end of next year, totaling 5.85 million barrels per day, or about 5.7% of global supply.

Focus on compliance and upcoming meeting

Analysts believe the decision reflects OPEC+'s focus on improving compliance with production quotas. OPEC will hold a meeting on May 5 to decide on production levels for June 2025.