On Sunday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, often referred to as OPEC+, agreed to increase oil production by 206,000 barrels per day (bpd) in April.

“The announcement follows a virtual meeting where member nations, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, reviewed global market conditions and outlook,” the OPEC website said.

“A production adjustment of 206,000 barrels per day was agreed upon by the eight participating countries, who decided to resume the unwinding of the 1.65 million barrels per day of additional voluntary adjustments announced in April 2023,” the statement read.

It further stated that the low oil inventories were a reflection of the sound market fundamentals and the stable outlook for the world economy.

OPEC stated that the 1.65 million barrels per day of voluntary reductions will be implemented gradually and might be partially or completely reversed based on changing market conditions.

It stated that the following decisions will be made during a meeting of eight nations on April 5.

The OPEC-planned production increases for the first quarter of 2026 are anticipated to terminate with the April output rise.

The 1.65 million barrels per day voluntary production cuts were first announced in April 2023 and then extended until the end of 2026.

The introduction of OPEC+ came after Israeli and American raids on Iran sparked worries about supply disruptions in the Middle East, particularly in the area surrounding the Strait of Hormuz.