The "OPEC+" alliance, which includes four Gulf countries, announced on Monday its plan to gradually and flexibly return to the market with the reduced oil production of 2.2 million barrels per day, starting from April 1st.
The eight member countries of the alliance, which implemented additional voluntary oil production cuts in April and November 2023, confirmed that they would move forward with a gradual and flexible return to the market, while maintaining the ability to adjust to evolving circumstances.
According to a statement published on OPEC's official website, the decision was made after a virtual meeting of representatives from Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, to review the global oil market conditions and future forecasts.
Under the decision, a series of supply increases, at 180,000 barrels per day, will begin next month, marking the gradual elimination of the 2.2 million barrels per day voluntary cuts on a monthly basis until the end of September 2026.
The UAE confirmed its commitment to market stability and adherence to additional voluntary adjustments that would enhance the balance between supply and demand.
According to the UAE's state news agency "WAM", the UAE and other "OPEC+" countries affirmed their intention to fully compensate for any excess production since January 2024, according to compensation plans submitted to the OPEC Secretariat, ensuring that all compensations will be completed by June 2026.
Countries with excess production agreed to submit their compensation plans in advance, with additional excess production being compensated during the early months of the compensation period. Updated compensation schedules will be submitted to the OPEC Secretariat by March 17th.
The "OPEC+" alliance includes the UAE, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.
Since 2022, the alliance has adopted a series of significant production cuts, which currently total 5.86 million barrels per day, representing about 5.7% of global demand.
