OPEC has announced updated plans requiring seven countries, including Saudi Arabia and the UAE, to implement further oil output cuts. This decision comes as these nations have been pumping above the agreed quotas. The announcement was made on Wednesday, indicating that the new measures aim to stabilize the oil market amid ongoing adjustments since late 2022.

The latest compensation plan mandates these countries to reduce their output by an additional 369 000 barrels per day (bpd) in monthly increments until June 2026. This is a revision from an earlier plan that was set to run from March until next June. The new monthly cuts will range from 196 000 bpd to 520 000 bpd, an increase from the previous range of 189 000 bpd to 435 000 bpd, according to calculations from Reuters.

If fully implemented, these cuts would significantly counterbalance a planned increase of 411 000 bpd by other OPEC+ members in May. The seven nations involved in these cuts include Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, and Oman. Notably, Algeria has not been assigned any required cuts as part of this plan.

Iraq, identified as the largest overproducer within the group, is making efforts to comply with its compensation cuts. A source revealed that Iraq’s crude allocations for May cargoes will be significantly lower to meet the new requirements. The country must address a total of 1.93 million bpd of overproduction by June 2026, while Kazakhstan is expected to make the second-largest cut of 1.3 million bpd during this period.