OPEC+ Members Agree to Boost Oil Production

Seven member countries of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced on June 2, 2024, that they will collectively increase their monthly oil production. This decision aims to adjust market supply and comes after previous agreements to curb output.

The countries participating in this production increase include Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Iraq, Algeria, and Kazakhstan. The group plans to raise their combined output by 188,000 barrels per day. This adjustment is scheduled to take effect in July and will be implemented through voluntary cuts that are being phased out by these specific nations.

This move by OPEC+ signifies a shift in strategy as global demand for oil shows signs of recovery. The group has been instrumental in managing oil prices through coordinated production decisions. The specific countries increasing output are doing so by gradually unwinding their voluntary production cuts that were put in place to support the market. The total volume of these unwound cuts across the seven nations amounts to the 188,000 barrels per day increase.