By:Zawya

MUSCAT: Oman’s oil production is projected to rise to 775,000 barrels per day (bpd) in June 2025, up from the required production level of 768,000 bpd set for May 2025.

This follows a decision by eight Opec+ producers, including the Sultanate of Oman, to implement a production adjustment of 411,000 bpd in June 2025. The decision was adopted on Saturday, May 3, 2025, during a virtual meeting of officials representing the eight producing nations. They also reviewed global market conditions and the outlook for oil demand.

In a statement, Opec said the decision by Oman, Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, and Algeria reaffirmed their commitment to market stability based on current healthy oil market fundamentals, and to adjust production upward. The eight countries had previously announced additional voluntary adjustments in April and November 2023.

“In view of the current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from April 1, 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day in June 2025 from the May 2025 required production level,” said Opec, noting that the increase is equivalent to three monthly increments.

Opec added that the gradual increases may be paused or reversed depending on evolving market conditions, providing the group with flexibility to continue supporting market stability. The measure also offers participating countries an opportunity to accelerate their compensation.

Oman and its peers in the Opec+ alliance have pledged to hold monthly meetings to review market conditions, conformity, and compensation. The next meeting is scheduled for June 1, 2025, to decide on July production levels.

Well-known Omani expert Ali al Riyami, former Director-General of Marketing at the Ministry of Energy and Minerals, commented: “In my view, this decision is likely to have a negative impact on oil markets, especially as the market remains affected by the consequences of tariff policies and the oversupply anticipated by oil experts, coupled with weak demand from China. Will this increase persist in the coming periods? Or will the organization revise its strategy? This is what we will find out in the coming weeks,” he added in a post.