Oil well south of Dubai, UAE [AP Yonhap News photo]

Major oil-producing countries, including Saudi Arabia and Russia, have agreed to modestly increase crude oil production from June.

According to the Organization of the Petroleum Exporting Countries (OPEC) on the 3rd (local time), seven member countries of OPEC and its allies (OPEC+)—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—announced this in a joint statement.

These countries stated that they would implement a production adjustment of 188,000 barrels per day starting from June, in relation to the "additional voluntary production adjustments" announced in April 2023, explaining that "this is part of a joint effort to stabilize the oil market."

They emphasized, "It is important to maintain full flexibility in increasing, suspending, or withdrawing voluntary production adjustments while taking a cautious approach to market stabilization."

According to figures attached to the joint statement, Saudi Arabia and Russia can each increase production by 62,000 barrels per day from June. Iraq will increase by 26,000 barrels, Kuwait by 16,000 barrels, Kazakhstan by 10,000 barrels, Algeria by 6,000 barrels, and Oman by 5,000 barrels.

These countries have scheduled a meeting for June 7th to discuss the crude oil market and compliance with production cuts, and stated that they plan to hold meetings every month thereafter.

Although not separately mentioned in this joint statement, the decision to ease production cuts is interpreted as a response to the recent abrupt announcement by the United Arab Emirates (UAE) that it would withdraw from OPEC and OPEC+.

Last month, the UAE announced its withdrawal from the "oil cartel" and signaled an increase in production amidst fluctuating international oil prices due to the war between the United States, Israel, and Iran.

OPEC and OPEC+, led by Saudi Arabia, have controlled oil prices by setting production quotas for member countries. However, this move is seen as offering a "carrot" that practically allows for increased production, in an effort to prevent other member countries from following the UAE's exit.