OPEC+ to begin gradual production increase in April

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OPEC+ is set to move forward with its plan to boost oil supplies and gradually unwind voluntary production cuts, following several delays due to market disruptions.

OPEC+ confirmed that the group of eight countries (Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman) that implemented additional voluntary adjustments in 2023 reiterated their commitment to the decision made in December.

The decision calls for a gradual return to production levels and flexibility in lifting voluntary restrictions, which include 2.2 million barrels per day, starting from April 2025. It also emphasizes "ensuring the ability to adapt to evolving conditions."

The plan begins with an increase of 138,000 barrels per day in April, marking the first increase in a series of monthly hikes aimed at restoring supply disruptions that have lasted for more than two years. The plan is set to be completed by 2026.

"This gradual increase may be temporarily halted or reversed depending on market conditions, and this flexibility will allow the group to continue supporting market stability," OPEC+ noted.

During an online meeting, the eight countries reaffirmed their commitment to comply with the additional voluntary production adjustments agreed upon during the Joint Ministerial Monitoring Committee (JMMC) meeting in April 2024.

They also confirmed their intention to compensate for any excess production since January 2024, in accordance with compensation plans submitted to the OPEC Secretariat, with the assurance that all compensation will be completed by June 2026.