OPEC+ agrees to modest production boost amid ongoing Iran war
Eight OPEC+ countries agreed to a modest oil output boost of 206,000 barrels per day for April amid the ongoing war on Iran and Tehran’s retaliatory strikes. The group – comprising Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman – met on Sunday as per an earlier schedule to review global market conditions and outlook.
“In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, 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 thousand barrels per day,” OPEC said in a statement.
According to analysts, OPEC+ has limited spare capacity to add to supply, except for Saudi Arabia and the United Arab Emirates.
“This adjustment will be implemented in April 2026 … The 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner. The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023,” OPEC said.
The group noted that the measure will provide an opportunity for the participating countries to accelerate their compensation. “The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC),” OPEC said.
The group also confirmed their intention to fully compensate for any overproduced volume since January 2024. The eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation, with the next meeting scheduled on 5 April 2026.
Oil prices jumped 7% to their highest levels in months on Monday as Iran and Israel stepped up attacks in the Middle East, a day after the killing of Iran Supreme Leader Ali Khamenei pitched the region and the oil market into potential uncertainty.
