Eight major members of the OPEC+ alliance have agreed to gradually increase oil production from April, citing steady global economic conditions and what they described as “healthy market fundamentals”.
The decision was reached during a virtual meeting involving Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.
The group reviewed global supply and demand dynamics before agreeing to partially roll back additional voluntary production cuts first introduced in April 2023.
The producers approved a production adjustment of 206,000 barrels per day (bpd) for April 2026, marking the first step in easing a voluntary reduction of 1.65 million bpd that has been in place for nearly three years.
In a statement, the alliance said relatively low oil inventories and stable economic prospects justified a cautious return of supply to the market.
However, members stressed that the 1.65 million bpd cut could be restored “in part or in full” depending on market conditions, adding that adjustments could be paused or reversed if required.
Data from Organization of the Petroleum Exporting Countries show that Nigeria, for instance, fell short of its crude oil production quota, producing an average of 1.401 million bpd, below the stipulated 1.5 million bpd target.
The 1.65 million bpd reduction introduced in April 2023 was complemented by a further 2.2 million bpd voluntary cut announced in November 2023, both aimed at stabilising prices amid global economic uncertainty and fluctuating demand.
Analysts say the latest decision reflects growing confidence among members that disciplined supply management has supported prices without creating excessive stockpiles.
Brent crude prices have remained firm in recent months, buoyed by controlled output and strong demand from Asia.
The producers reaffirmed their commitment to the 2022 Declaration of Cooperation, the framework binding OPEC members and non-OPEC allies such as Russia, with compliance monitored by the Joint Ministerial Monitoring Committee (JMMC).
Countries that have exceeded production limits since January 2024 are expected to fully compensate for the surplus, with compensation plans subject to monthly review.
Accounting for roughly 40 per cent of global crude supply, OPEC+ has repeatedly adjusted output since the COVID-19 pandemic in response to demand fluctuations, geopolitical tensions and inflationary pressures.
The eight countries will continue monthly consultations to assess market conditions, compliance levels and compensation efforts, with the next meeting scheduled for 5 April 2026.
Energy markets will be watching closely to see whether the phased increase signals a sustained recovery or remains a cautious step tied to global economic stability.
