OPEC+ members have decided to increase oil production by 411,000 barrels per day (bpd) in May, leading to a decline in oil prices.
Brent crude fell by 6.8% to $69.85 a barrel, while US West Texas Intermediate (WTI) crude dropped by 7.08% to $66.63.
The production increase follows a virtual meeting among eight OPEC+ member countries, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman.
The countries had previously announced voluntary downward adjustments of 1.65 million bpd in April 2023, and an additional cut of 2.2 million bpd in November 2023.
According to OPEC, the production adjustment is equivalent to three monthly increments and may be paused or reversed subject to evolving market conditions. The group aims to support oil market stability and provide an opportunity for participating countries to accelerate their compensation.
The eight countries will hold monthly meetings to review market conditions, conformity, and compensation, with the next meeting scheduled for May 5 to decide on June production levels.
