OPEC+ to accelerate oil output, potentially lowering oil prices despite Russian reliance, Reuters reports

The group, which includes Russia in its expanded framework, on May 3 agreed to a large oil production hike in June, Reuters reported on May 4.

The Kremlin largely uses oil sales to fund Russia's war against Ukraine. Lower oil prices could jeopardize Russia's ability to fund its war and put additional strain on its already struggling economy.

The Organization of the Petroleum Exporting Countries (OPEC) includes nations such as Saudi Arabia, Venezuela, and Iran. OPEC+ includes additional members such as Russia, Kazakhstan, and Brazil.

2.2 million barrels per day of current voluntary production cuts could be undone by the end of October, five sources from OPEC+ told Reuters.

Russia’s economy is dependent on oil revenues, which make up around 30% of its total state budget. Lower oil prices have repeatedly concerned Russian authorities.

Additional hikes of about 411,000 barrels per day will likely be made in June, sources said, adding that OPEC+ has held back oil production, but Saudi Arabia now insists production is increased amid non-compliance from members such as Kazakhstan and Iraq.

Saudi Arabia warned against members failing to comply at a meeting held on May 3, an unnamed source told Reuters.

OPEC+ is expected to make additional production hikes in the coming months if non-compliance with voluntary cuts continues, sources have said.

U.S. President Donald Trump said on Jan. 23 he will ask OPEC to lower the price of oil, saying it would end Russia's war against Ukraine "immediately."

"If the price came down, the Russia-Ukraine war would end immediately," he said via videolink at the World Economic Forum in Davos, Switzerland.

"Right now the price is high enough that that war will continue, you gotta bring down the oil price and end that war," he added.