Overview

• OPEC+ has agreed to accelerate its oil output hikes, increasing production by 411,000 barrels per day starting in May 2025, three times the previously planned increment.
• The decision, involving eight key producers including Saudi Arabia, Russia, and Kazakhstan, comes as the group seeks to balance market stability and address quota compliance issues.
• Kazakhstan's persistent overproduction has caused tensions within the alliance, prompting calls for stricter adherence to quotas and compensatory production cuts.
• Oil prices have dropped by approximately 6% following the announcement, reflecting market sensitivity to the accelerated hikes.
• The move coincides with broader economic uncertainty, including the impact of newly introduced U.S. tariffs on key trade partners.