OPEC+ has mandated additional oil production cuts for seven member nations to compensate for exceeding agreed output levels. These reductions, ranging from 189,000 to 435,000 barrels per day (bpd), are scheduled to continue until June 2026, Reuters reported.
The alliance, which includes OPEC members and allies like Russia, has been implementing output cuts totalling 5.85 million bpd since 2022 to stabilise the market. Despite plans to increase production by 138,000 bpd starting in April, the new compensatory cuts aim to address recent overproduction by certain members.
Iraq, Kazakhstan, and Russia will shoulder the majority of these additional cuts. Notably, Kazakhstan’s output surged recently due to Chevron’s expansion at the Tengiz oilfield, significantly exceeding its OPEC+ quota.
Saudi Arabia, traditionally compliant with OPEC+ agreements, will implement smaller cuts ranging from 6,000 to 15,000 bpd over three months.
