The 23 members of coalition, known as OPEC+, made an agreement during the 15th OPEC and non-OPEC Ministerial Meeting held via video conference on Thursday to raise crude oil output by 350,000 bpd in May and June, and by 450,000 in July.

Therefore, crude oil output cut by OPEC+ member countries will decrease to 6.550 million bpd in May, 6.200 million bpd in June, and ultimately to 5.750 million bpd in July.

Saudi Arabia will also gradually phase out its 1 million bpd voluntary production cut from May, ending it in July. So, the country will increase its oil supply to the oil market by 250,000 bpd in May, 350,000 bpd in June and 400,000 bpd in July.

According to the agreement, those members which failed to comply with the oil output cuts are allowed to compensate fully for their overproduction until September 30, 2021.

Iran, Venezuela and Libya are still exempt from any output cuts.

Moreover, the next meetings of the Joint Ministerial Monitoring Committee (JMMC) and OPEC and non-OPEC Ministers are scheduled to be held on April 28.

OPEC and allied producers made a record cut of 9.7 million bpd from May to July 2020 as global lockdown measures slashed fuel demand. Then, the group eased cuts to 7.7 million bpd from August and to 7.2 million bpd as of January, 2021.

During the meeting in January, OPEC+ reached a compromise on crude oil output cuts of 7.125 million bpd for February which decreased to 7.05 million bpd and 6.9 million bpd in March and April respectively.