The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, on Sunday decided to ramp up oil output by 206,000 barrels per day (bpd) in April.
The announcement was made after a virtual meeting where member countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, reviewed global market conditions and outlook, according to a statement on the OPEC website.
“The eight participating countries decided to resume the unwinding of the 1.65 million barrels per day of additional voluntary adjustments announced in April 2023 and agreed on a production adjustment of 206,000 barrels per day,” the statement said.
It added that the global economic outlook is steady, and current market fundamentals are healthy, which was reflected in the low oil inventories.
The 1.65 million bpd in voluntary cuts could be phased back in either partially or fully, depending on evolving market conditions and would be implemented gradually, OPEC said.
It said that eight countries are scheduled to meet on April 5 to make the following decisions.
The April output increase is expected to end the OPEC planned production increases for the first quarter of 2026.
The voluntary production cuts of 1.65 million bpd were first announced in April 2023 and were later extended through the end of 2026.
The OPEC+ announcement was made following US and Israeli strikes on Iran, which raised concerns about supply disruptions in the Middle East, especially around the Strait of Hormuz.
Market analysis expected oil prices to soar on Monday.
