Eight OPEC+ countries participating in the agreements on voluntary oil production cuts are expected to increase production by 411,000 barrels per day (bpd) in May, which is in line with the original plan to increase production over three months, Report informs via TASS.

Among the countries that have committed to voluntary adjustments to their production plans are Russia, Saudi Arabia, Iraq, the UAE, Kazakhstan, Algeria, Oman and Kuwait. Since the beginning of 2024, these countries have voluntarily reduced production by a total of 2.2 million bpd.

Since April, they have begun a gradual recovery of production. The production growth plan for April was 138,000 bpd, excluding excess production compensation. In May, the increase in production was initially supposed to be 135,000 bpd, but on April 3, at the meeting of the OPEC+ "eight", a decision was made to accelerate the growth of oil production to 411,000 bpd, which is equivalent to a three-month plan for its increase. The production plan for June will be discussed separately at the meeting on May 5.

These agreements do not take into account the obligations of seven of the eight OPEC+ "volunteers" to compensate for the excess oil production allowed during the period of voluntary reductions. Only Algeria has fully implemented the entire plan for reducing production. The remaining countries, according to the latest schedule, must compensate for 4.572 million bpd of under-reduced production in the period from April 2025 to June 2026.

For May, the compensation plan provides for a reduction in production by 378,000 bpd. Thus, taking into account the compensation, the growth in oil production of eight OPEC+ countries in May should amount to 253,000 bpd compared to April.