by Andreas Exarheas|RigZone.com| A statement posted on OPEC’s website on Saturday announced that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman “will implement a production adjustment of 411,000 barrels per day” next month.The statement noted that “the eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023 … met virtually on 31 May 2025, to review global market conditions and outlook”.
“In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411,000 barrels per day in July 2025 from June 2025 required production level,” it added.
The statement noted that this “is equivalent to three monthly increments” and highlighted that “the gradual increases may be paused or reversed subject to evolving market conditions”, adding that “this flexibility will allow the group to continue to support oil market stability”.
“The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation,” the statement went on to note.
“The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that were agreed to be monitored by the JMMC during its 53rd meeting held on April 3rd 2024,” it continued.
The statement also noted that the eight countries “confirmed their intention to fully compensate for any overproduced volume since January 2024”.
“The eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation. The eight countries will meet on 6 July 2025 to decide on August production levels,” it added.
According to a table accompanying the statement, “July 2025 required production” is 9.534 million barrels per day for Saudi Arabia, 9.240 million barrels per day for Russia, 4.122 million barrels per day for Iraq, 3.169 million barrels per day for the UAE, 2.488 million barrels per day for Kuwait, 1.514 million barrels per day for Kazakhstan, 936,000 barrels per day for Algeria, and 782,000 barrels per day for Oman.
In an oil report sent to Rigzone by the Skandinaviska Enskilda Banken AB (SEB) team on Monday, Bjarne Schieldrop, Chief Commodities Analyst at SEB, noted that “Brent crude is jumping 2.4 percent this morning to $64.3 per barrel following the decision by OPEC+ this weekend to lift the production cap of ‘Voluntary 8’ (V8) by 411,000 barrels per day in July and not more as was feared going into the weekend”.
Schieldrop pointed out in the report that “the Brent crude oil front-end backwardation strengthened last week (sign of tightness) even when the market feared for a production hike of more than 411,000 barrels per day for July”.
The analyst added that “U.S. crude, diesel and gasoline stocks fell the week before last with overall commercial stocks falling 0.7 million barrels versus a normal rise this time of year of 3-6 million barrels per week” and went on to state that “surplus is not here yet”.
The U.S. Energy Information Administration’s (EIA) latest weekly petroleum status report, which was released on May 29 and included data for the week ending May 23, showed that total U.S. petroleum stocks, excluding the Strategic Petroleum Reserve (SPR), dropped by 0.7 million barrels week on week.
A statement posted on OPEC’s website on May 3 announced that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman “will implement a production adjustment of 411,000 barrels per day in June 2025 from [the] May 2025 required production level”.
A statement posted on the group’s website on April 3 announced that the eight countries would “implement a production adjustment of 411,000 barrels per day, equivalent to three monthly increments, in May 2025”.
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