MUSCAT, JUNE 8
Oman will see its crude oil production increased by 5,000 barrels per day (bpd) in July 2026 under the latest output adjustment agreed by Opec+, lifting the Sultanate of Oman’s production ceiling to 831,000 bpd.
The increase forms part of a collective decision by seven Opec+ producers — Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman — to gradually unwind a portion of the additional voluntary production cuts introduced in 2023 to support global oil market stability.
Meeting virtually on June 7, the seven countries agreed to implement a combined production adjustment of 188,000 bpd in July 2026. The move represents another step in a previously announced roadmap aimed at restoring voluntarily curtailed supplies to the market, while retaining flexibility to pause, accelerate or reverse the process depending on evolving market conditions.
The participating countries reaffirmed their commitment to maintaining market stability and ensuring full compliance with the Opec+ Declaration of Cooperation. They also pledged to compensate for any overproduction recorded since January 2024, with the compensation period now extended through December 2026.
Commenting on the decision, Omani energy expert Ali al Riyami described the production increase as largely “symbolic” under current circumstances, given continuing disruptions to regional energy flows and shipping movements through the Strait of Hormuz.
Al Riyami said the decision should be viewed in the context of Opec+’s broader strategy to gradually restore production volumes withheld under voluntary cuts. He noted that the alliance remains committed to returning these barrels to the market by the end of the year as conditions normalise.
According to Al Riyami, Oman’s crude exports and oil revenues are expected to remain resilient despite ongoing geopolitical tensions. He said the latest Opec+ action reflects confidence that oil trade through the Arabian Gulf will gradually return to normal levels.
The expert also observed that global oil prices have been tempered by softer Chinese demand and increased production from the United States, Canada, Guyana and Brazil. Nevertheless, he cautioned that physical crude buyers are often paying premiums of $20–30 per barrel above benchmark prices such as Brent to secure prompt deliveries, highlighting continued tightness in parts of the market.
The seven Opec+ countries are scheduled to meet again on July 5 to review market conditions, conformity levels and compensation commitments.
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