ERBIL, Kurdistan Region - The OPEC+ met on Sunday to review global market conditions and outlook, deciding to implement a production increase of 188,000 barrels per day (kbd) amid a global energy shortage.
The meeting, which included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, concluded with an agreement to raise output by 188,000 barrels per day starting in June, divided among the seven countries, according to a joint statement.
“The countries will continue to closely monitor and assess market conditions” and in their efforts to maintain market stability they affirmed “the importance of adopting a cautious approach and retaining full flexibility,” read the statement.
OPEC is a permanent intergovernmental organization of 12 oil-exporting nations that coordinates petroleum policies to stabilize markets, while OPEC+ is a broader alliance that includes the original members plus 10 non-OPEC countries, most notably Russia, to exert greater control over global oil supply.
The decision comes against the backdrop of fragile maritime security in the region, marked by escalating tensions in the Strait of Hormuz, which handles around 20 percent of global seaborne oil trade.
The increase outlines allocations for each participating country, placing Saudi Arabia and Russia first with 62 kbd each, followed by Iraq with 26 kbd, Kuwait with 16 kbd, Kazakhstan with 10 kbd, and Algeria and Oman with 6 and 5 kbd respectively.
OPEC+ added that the seven countries will hold monthly meetings to review market conditions, conformity, and compensation, and will meet again on June 7.