A news report by Bloomberg on Thursday indicated that key members of OPEC+ were planning to start a series of gradual oil quota increases over the coming months, with the aim of fully restoring a previously halted layer of production by the end of September.
The online news medium reported that the group had already agreed to reinstate about two-thirds of a 1.65 million barrels per day output cut implemented in 2023 and that the members were expected to sustain the quota increases in three further monthly tranches.
The OPEC+ group, led by Saudi Arabia and Russia, has continued to provide some supply increases to the global oil markets despite the Middle East geopolitical tensions, even as global oil markets face tight supply and elevated prices.
According to delegates who spoke to Bloomberg, OPEC+ intends to proceed with its phased quota restoration plan, even if actual output adjustments remain limited by operational and geopolitical constraints.
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The oil cartel group plans to fully restore the remaining portion of the 1.65 million barrels per day cuts by September, although the member-countries’ recent agreed increases remain largely “theoretical” due to production disruptions linked to the Middle East conflict.
The next OPEC+ policy meeting is scheduled for June 7, where July production levels will be reviewed.
The delegates noted that while quotas were being adjusted upward, many of the member-countries are unable to meet revised targets due to supply disruptions and infrastructure constraints.
It would be recalled that prior to the escalation of conflict in the Middle East, eight members of OPEC+ alliance had commenced gradual restoration of their production, which they previously agreed upon to reduce a global oil glut.
The group had in 2023 agreed to cut 1.65 million barrels per day from their output as part of efforts to stabilise oil prices in the global markets.
