OPEC+ ministers will convene virtually on Thursday and are expected to greenlight a 135,000 barrel-per-day (bpd) production increase for May, continuing their phased plan to unwind pandemic-era supply cuts, according to sources within the group. The move marks the second consecutive monthly output hike under a strategy to gradually restore 5.85 million bpd of halted production while pressuring members like Iraq and Kazakhstan to compensate for past overproduction.
Key Details:
Compensation Pressure: The meeting will review plans for members exceeding quotas to cut output temporarily, ensuring compliance with OPEC+ targets.
Global Supply Context: OPEC+ cuts, equivalent to 5.7% of global oil supply, have stabilized markets since 2022. The group’s Joint Ministerial Monitoring Committee (JMMC) may also meet Thursday to assess policy adjustments.
Strategic Unwinding: The May hike aligns with OPEC+’s broader roadmap to cautiously restore supply without destabilizing prices, amid geopolitical risks and fluctuating demand.