OPEC+ updates plan to compensate for overproduction

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OPEC+ issued on March 20 a new schedule for seven member nations to make further oil output cuts to compensate for pumping above agreed levels, which will more than overtake the monthly production hikes the group plans to introduce next month.

According to OPEC’s statement, the plan will represent monthly cuts of between 189,000 barrels per day and 435,000 bpd. The cuts last until June 2026.

Iraq will contribute the largest share of supply cuts to compensate for previous overproduction, followed by Kazakhstan and Russia, then the UAE, Kuwait, Oman, and Saudi Arabia.

On March 3, OPEC+ confirmed that eight of its members—Saudi Arabia, the UAE, Kuwait, Oman, Algeria, Kazakhstan, Iraq, and Russia—will continue their monthly production increase of 138,000 barrels per day starting in April, citing improving market fundamentals.