ASTANA – Eight OPEC+ countries, including Saudi Arabia, Russia, and Kazakhstan, have agreed to a modest production increase starting in June, citing strong market fundamentals and low global oil inventories. The decision was made during a virtual meeting on May 3, according to a statement from OPEC.
The group, which had previously announced voluntary production cuts in April and November 2023, will raise output by 411,000 barrels per day in June. This move is part of a broader plan to gradually reverse the 2.2 million barrels per day in voluntary cuts that began on April 1, 2024.
OPEC noted the plan remains flexible and could be paused or reversed depending on market conditions. The aim is to maintain stability in the oil market while allowing member countries to adjust and compensate for previous production shortfalls.
According to OPEC’s schedule, Kazakhstan is allowed to boost its oil output to 1.5 million barrels per day in June. The eight countries will continue to hold monthly meetings to review market dynamics, compliance, and compensation mechanisms. The next meeting is set for June 1, when July production levels will be decided.
The same day, the Stankevicius Group, a global market analysis and policy research firm, addressed criticism of Kazakhstan’s role in the OPEC+ agreement. The group argued that accusations of non-compliance are unfounded.
Kazakhstan accounts for less than 5% of OPEC+ production and under 2% of global oil output, the report noted, meaning any overproduction on its part has a minimal impact on global prices. The analysis also pointed out that larger producers, such as Russia, Iraq, and the UAE, have repeatedly exceeded their quotas without facing similar scrutiny.
Kazakhstan, the report said, is fulfilling its obligations while advocating for a revision of current quotas to better reflect national interests. It also criticized recent moves by Saudi Arabia to ramp up output, suggesting such actions cause more disruption to market balance than Kazakhstan’s production levels.
The report concluded that Kazakhstan is trying to maintain a fair balance between national interests and those of the wider OPEC+ alliance, while other members often act unilaterally.
Related Topics:
- Traders Eager to Reenter Russian Crude Market, But the Door Remains Closed
- Oil Prices Rise Due to Venezuela Tariffs
- Iraq Gives BP Final Approval for Kirkuk Oil Development