OPEC+ will increase the quota of oil production three times higher than the planned. So Saudi Arabia is trying to punish Kazakhstan and Iraq for exceeding quotas

Key countries, led by Saudi Arabia and Russia, agreed to increase the production of 411 thousand barrels per day next month. This is three times exceeding the plan. According to the publication, the delegates Opek+, the change of strategy is associated with the fatigue of Riyadh from the systematic excess of quotas by member countries such as Kazakhstan and Iraq. The Saudis decided to discipline them with financial “squeezing” through the collapse of prices.

As Bloomberg notes, thus Er-Riyad also seeks to strengthen relations with Donald Trump, who will visit the Middle East this month and repeatedly called for reducing the cost of fuel.

The turn of Saudi Arabia to an increase in production added anxiety to the general situation against the backdrop of Trump’s trade war with China - the largest global oil importer - and other leading economies. Prior to the start of a new growth in OPEC+ oil market, the oil market was already faced with the expected re-excess in 2025 due to a decrease in demand in China and high supplies from the United States.

Iraq is making efforts to observe quotas, but it is impossible to say the same about Kazakhstan. He practically cannot control the actions of international oil companies, such as Chevron and ENI, implementing large projects to increase production. According to Bloomberg sources, the country's authorities did not even ask them to reduce volumes. In March, Kazakhstan exceeded the established quota of OPEC+ by 422 thousand barrels per day.