OPEC+ Boosts Crude Oil Output, Driving Prices Down 6%: What It Means for You

On Tuesday, eight leading OPEC+ producers announced a significant increase in crude oil output, raising production by 411,000 barrels per day, a move that has quickly affected market prices. By 1:32 p.m. London time, the Ice Brent contract for June was trading at $70.50 per barrel, marking a 5.94% drop from Wednesday’s close, while the May Nymex WTI contract fell to $67.11 per barrel, down 6.41%.

The producers—Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman—met virtually to assess global market conditions. This output increase, set to begin in May, exceeds expectations for a nudge of just under 140,000 barrels per day. OPEC indicated this move equates to three months of increments and suggested that future increases may be adjusted based on market conditions.

This adjustment follows an ongoing unwinding of 2.2 million barrels per day in voluntary cuts, separate from the broader 22-member OPEC+ strategy, which is currently managing about 3.66 million barrels per day in reductions slated to last until the end of 2026. Notably, this meeting introduced Erlan Akkenzhenov, Kazakhstan’s new energy minister, who joins amid challenges in meeting production quotas.

The decision comes against a backdrop of market instability caused by recent tariffs imposed by the U.S. administration, highlighting an intricate balance between global production dynamics and international trade relations.