OPEC+ plans to raise quotas to restore 1.65 million barrels per day cuts.

By Yinka Kolawole, with agency report

The Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, is set to gradually lift its oil production quotas, aiming to fully restore the 1.65 million barrels‑per‑day cut that was introduced in 2023 by September of this year.

A Bloomberg report released yesterday states that the alliance has already agreed to reinstate almost two‑thirds of the cuts and plans to introduce three further monthly quota increases in the coming months.

These staged supply restorations occur against a backdrop of ongoing geopolitical tensions in the Middle East, especially the Iran‑related conflict that continues to affect exports through key routes such as the Strait of Hormuz. Despite the planned increases, overall production growth within the alliance has been modest, as several member states face operational difficulties, infrastructure constraints and supply disruptions linked to the regional conflict.

Delegates quoted in the report said that OPEC+, led by Saudi Arabia and Russia, will proceed with the scheduled quota adjustments even though the increases may be largely symbolic in practice.

The 1.65 million barrels‑per‑day cut was first implemented in 2023 to stabilise global crude prices amid concerns over weakening demand and excess supply.

Prior to the escalation of Middle‑Eastern tensions, eight major OPEC+ producers had begun a gradual reversal of the output restraint agreement.

However, the effectiveness of the restoration programme has been hampered by disruptions in some producing countries and shifting dynamics within the alliance. The United Arab Emirates’ recent exit from OPEC has also reduced the overall scale of the original production cut arrangement.

During its meeting on 3 May, OPEC+ approved a modest production increase of 188,000 barrels per day for June, signalling a cautious approach to returning supply to the market. The alliance is expected to review July production levels and broader supply policy at its next ministerial meeting scheduled for 7 June.

Analysts note that OPEC+ must balance efforts to stabilise oil prices with the need to address supply uncertainties and geopolitical risks that continue to shape the global energy market.

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