OPEC+ announced a daily oil production increase of 188,000 barrels, effective June 2026, following a virtual meeting on Sunday. The decision was made by seven member countries: Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, and Saudi Arabia. They cited a collective commitment to oil market stability and said the adjustment stems from voluntary cuts announced in April 2023. The group stated the move will allow participating countries to accelerate compensation for overproduction since January 2024.
The seven countries agreed to gradually reverse the 2023 adjustments, either partially or fully, depending on market conditions. They pledged to maintain flexibility, with the ability to pause, increase or reverse the rollback as needed. The Joint Ministerial Monitoring Committee will oversee compliance. Monthly meetings will be held to review market conditions, with the next scheduled for 7 June 2026.
The UAE, previously part of OPEC+ decision-making, announced its withdrawal on 28 April, citing a review of its production policy and capacity. While OPEC+ has 21 members, only seven plus the UAE have recently shaped output decisions. The global oil supply has been disrupted since 28 February due to the closure of the Strait of Hormuz amid the U.S.-Israeli conflict with Iran. Oil prices have risen to $125 per barrel as a result.
Seven OPEC+ nations are allowing higher production while promising to uphold market stability, yet they delayed the increase until June 2026, long after the Hormuz disruption began. This gap between crisis and response suggests the group prioritises internal compensation mechanisms over immediate market reactions. Nigerian fuel consumers, already facing high prices, see no direct benefit from an adjustment that takes years to materialise. The delay exposes how OPEC+ decisions serve member quotas more than global supply needs.
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