OPEC receives compensation plans from overproducing members
OPEC has received revised compensation plans from seven members to make deeper cuts in the upcoming months through June 2026, for previous overproduction.
IMAGE: Model of an oil pump jack with the flag of OPEC in the background. Getty Images
Brent crude’s price got a boost after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) released the new compensation plan for Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan and Oman.
As agreed, the group’s de-facto leader Saudi Arabia will make a one-time production cut of 15,000 b/d in April. Iraq is expected to make cuts ranging between 120,000 b/d and 140,000 b/d through June 2026.
Kazakhstan has pledged to make deeper cuts in the upcoming months, according to OPEC’s statement. The country will reduce production by 141,000 b/d in August and 160,000 b/d in October this year.
“In addition to Iraq, Kazakhstan continues to produce well above its quota,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked. Iraq and Kazakhstan have agreed to production cuts of 1.9 million b/d and 1.3 million b/d, respectively between April 2025 and June 2026.
Russia will reduce its oil output between April and September 2025. The deepest cuts are planned for August and September, when production will fall by 163,000 b/d and 189,000 b/d, respectively.
The seven OPEC+ members will collectively cut production by a total of 4.6 million b/d through June 2026, the coalition announced.
By Aparupa Mazumder
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