OPEC+ accelerates increase in oil production.
The group announced it would increase production by 411.000 bpd in May.
247 - Eight OPEC+ countries agreed on Thursday (3) to move forward with the plan to gradually eliminate oil production cuts, promoting an increase in production of 411.000 barrels per day in May, the agency reported. Reuters.
Eight members of OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies led by Russia, had planned to increase production by 135.000 barrels per day in May as part of a plan to gradually undo the most recent layer of production cuts.
But after a meeting held online this Thursday, the group announced it would increase production by 411.000 bpd in May. OPEC cited "continued healthy market fundamentals and a positive market outlook."
"This includes the increase originally planned for May, plus two monthly increments," OPEC said in a statement, referring to the volume. "The gradual increases may be paused or reversed, subject to evolving market conditions."
The May increase is the next in a plan agreed upon by Russia, Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, Algeria, Kazakhstan, and Oman to gradually undo the most recent production cut of 2,2 million bpd, which came into effect this month.
OPEC+ also has 3,65 million bpd of other production cuts in place until the end of next year to support the market.
Thursday's decision partly reflects the desire of OPEC+ leaders to improve compliance with production quotas, analysts said.
Record production in Kazakhstan has angered several other members of the group, including the main producer, Saudi Arabia, sources told Reuters. OPEC+ is calling on the Central Asian country, among other members, to make further cuts to compensate for the overproduction.
