OPEC+ eight members pledge further production cuts
author: Ann
2025-04-18
On April 17, OPEC said it had received updated oil production cut plans from Iraq, Kazakhstan and other countries, and eight OPEC+ members pledged to further cut production to compensate for previous production that exceeded the agreed quota.
Since the end of 2022, OPEC+, including OPEC, Russia and other allies, has implemented a series of production cuts. The compensation plan aims to ensure that those member countries that have failed to fully fulfill their production cut obligations will make further production cuts in the future.
According to foreign media calculations, from April 2025 to June 2026, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan and Oman (Algeria is on the list but has no production cut requirements) need to further cut a total of 369,000 barrels per day. Compared with the previous plan, which lasted from March to June this year, the latest plan will see total monthly production cuts of between 196,000 and 520,000 barrels per day from this month to June 2026, higher than the previous plan of 189,000 to 435,000 barrels per day.
Since the end of 2022, OPEC+, including OPEC, Russia and other allies, has implemented a series of production cuts. The compensation plan aims to ensure that those member countries that have failed to fully fulfill their production cut obligations will make further production cuts in the future.
According to foreign media calculations, from April 2025 to June 2026, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan and Oman (Algeria is on the list but has no production cut requirements) need to further cut a total of 369,000 barrels per day. Compared with the previous plan, which lasted from March to June this year, the latest plan will see total monthly production cuts of between 196,000 and 520,000 barrels per day from this month to June 2026, higher than the previous plan of 189,000 to 435,000 barrels per day.
However, OPEC+ has revised the plan several times as some countries have previously failed to make cuts as promised. Iraq, the organization's largest excess producer, plans to step up its efforts to fulfill its compensatory reduction commitments, and its crude oil freight quotas for customers in May have been significantly reduced, sources said. Iraq will need to compensate for excess production totaling 1.93 million barrels per day by June 2026, while Kazakhstan will need to make the second-largest compensatory cuts to make up for excess production totaling 1.3 million barrels per day over the same time period.
Michael McCarthy, CEO of online investment platform Moomoo, said that Iran's production is limited by US sanctions and OPEC members are beginning to comply with quotas, which has fueled the market's bullish sentiment. In addition, a sharp increase in US gasoline and distillate inventories and a smaller-than-expected weekly increase in crude oil inventories also boosted the market. However, recent selling pressure in the global crude oil market is related to market concerns about a large influx of US crude oil, while falling refining production suggests that supply bottlenecks may be emerging.
Despite some positive factors in the market, OPEC, the International Energy Agency (IEA) and several banks such as Goldman Sachs and JPMorgan Chase all lowered their expectations for oil prices and demand growth this week. The reason is that US tariffs and retaliatory measures by other countries have thrown global trade into chaos. The World Trade Organization (WTO) predicts that global trade in goods will decline by 0.2% this year, far lower than its forecast of 3.0% growth in October last year. The further production cuts by OPEC+ members this time will have a subsequent impact on the oil market and the global economy, which deserves continued attention.
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