OPEC+'s Strategic Oil Output Cuts: Nations Align on New Targets

OPEC+ has updated its oil output reduction plans for Iraq, Kazakhstan, and others to offset excessive pumping beyond agreed quotas. The new plan mandates seven countries to cut 369,000 barrels per day until June 2026, compensating for planned output increases by other members this year.

In a bid to stabilize the oil market, OPEC+ announced revised plans mandating further output cuts for Iraq, Kazakhstan, and other member countries. These actions aim to address overproduction exceeding agreed quotas.

This strategic adjustment requires seven nations to reduce output by 369,000 barrels per day from now until June 2026, with monthly cuts ranging from 196,000 to 520,000 barrels. This move counters a planned output increase of 411,000 barrels per day by other members.

Despite past irregularities, major producers like Iraq are keen to implement these cuts. Iraq has reduced May crude allocations, striving to compensate for overproduction of 1.93 million barrels by June 2026, while Kazakhstan faces a cut of 1.3 million barrels.

(With inputs from agencies.)