In a move that surprised markets, eight OPEC+ countries — Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman — agreed to implement a larger-than-expected oil supply hike for May 2025. The decision came following a virtual meeting on April 3, where the group assessed current market conditions and a healthier global oil outlook.
According to a joint statement, the eight countries will implement a production adjustment of 411,000 barrels per day in May, comprising three months’ worth of planned increments originally intended to be spread out over April to June. This accelerated adjustment is being made under the framework agreed on December 5, 2024, and reaffirmed on March 3, 2025.
The decision reflects the group’s confidence in improving demand and their commitment to support global oil market stability. However, the countries emphasized that this increase remains flexible and could be paused or reversed based on evolving market dynamics.
The eight participating nations also pledged to fully compensate for any overproduction since January 2024, with updated compensation plans to be submitted to the OPEC Secretariat by April 15, 2025. The group is set to reconvene on May 5 to assess conditions and determine production levels for June.
The supply hike marks a significant shift as OPEC+ begins to unwind its earlier voluntary cuts of 2.2 million barrels per day — a process they had initially planned to execute more gradually.
