OPEC+ plans phased output hike, but Iraq breaches quota

Shafaq News/ Eight OPEC+ members involved in the voluntary production cut agreement are set to gradually raise oil output, while Iraq has already exceeded its quota by more than 200,000 bpd, potentially risking future curbs.

Saudi Arabia, Russia, Iraq, the UAE, Kazakhstan, Algeria, Oman, and Kuwait had jointly slashed output by 2.2M bpd since the start of 2024. Under a new plan, the group aims to restore 411,000 bpd over three months, beginning with an increase of 138,000 bpd in April.

The planned hike for May was initially set at 135,000 bpd but has been revised upwards, bringing the total monthly increase to 411,000 bpd. Despite this, the net production growth for May will be limited to around 253,000 bpd due to a simultaneous cut of 378,000 bpd applied across other member states.

According to OPEC+, Algeria is the only country to have fully implemented its output cut. The remaining seven producers are required to compensate for overproduction totaling 4.572 million bpd between April 2025 and June 2026.

Iraq, however, has already breached its quota, with production exceeding the agreed level by over 200,000 bpd.