OPEC+8 Countries Announce Oil Production Increase Amid Signs of Global Recovery

Eight member states of the OPEC+ alliance have announced the start of a gradual adjustment in oil production, with an increase of 411,000 barrels per day set for June 2025, citing improved market fundamentals such as declining oil inventories and a gradual rebalancing of supply and demand

The participating countries include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman — all of which had previously agreed to voluntary adjustments in April and November 2023

According to a statement issued by the Saudi Ministry of Energy, the increase is part of the agreement reached in December 2024, aimed at a flexible and gradual restoration of the voluntary production cuts totaling 2.2 million barrels per day. The statement emphasized that the adjustment could be paused or reversed depending on market developments

Tight Monitoring and Plans to Offset Excess Production

The implementation of these adjustments will be closely monitored by the Joint Ministerial Monitoring Committee (JMMC) at its upcoming meeting, with monthly reviews of market conditions and compliance levels. An additional meeting is scheduled to determine production levels for July 2025

The participating countries reaffirmed their commitment to fully compensate for any excess production since early 2024, in support of global oil market stability

This move comes amid cautious optimism regarding the global economic outlook, bolstered by modest growth recorded in major economies such as Germany, which narrowly avoided a recession in the first quarter of 2025, thereby fueling hopes for a gradual recovery in energy demand

At the same time, markets are closely watching the developments of global trade disputes, particularly following the impact of U.S. tariffs on global trade flows, which could potentially affect oil demand worldwide

These developments underscore that OPEC+ is pursuing a dynamic and flexible policy, capable of swiftly adapting to global economic shifts to maintain stability in the vital oil markets