Algeria, OPEC+ Partners Accelerate Oil Output Hike Amid Global Market Stability

✍️ BY: Dr. Hana Saada

In a strategic move to reinforce global energy security, Algeria joins seven key OPEC+ countries to fast-track the lifting of voluntary production cuts, with output to increase by over 400,000 barrels per day starting July 2025.

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Algiers, Algeria | May 31st, 2025 — Algeria and seven other OPEC+ member countries have collectively decided to accelerate the rollback of voluntary oil production cuts, marking a significant shift in the alliance’s strategy as global economic indicators stabilize and crude inventories remain historically low.

The decision was announced on Saturday following a high-level ministerial meeting held via videoconference, bringing together the eight countries that had implemented voluntary output reductions in April 2023—namely Algeria, Saudi Arabia, the United Arab Emirates, Iraq, Kazakhstan, Kuwait, Oman, and Russia.

According to the official statement issued by the Organization of the Petroleum Exporting Countries (OPEC), the group agreed to collectively boost production by 411,000 barrels per day as of July 2025. The decision is rooted in “stable global economic prospects and solid oil market fundamentals, including low global crude stock levels,” noted the communiqué.

Algerian Minister of State and Minister of Energy, Mines and Renewable Energies, Mohamed Arkab, took part in the meeting, which built upon a prior agreement reached on March 3, 2025. During that session, the eight countries had committed to a gradual phase-out of their 2.2 million barrels per day in voluntary cuts beginning April 1, 2025, through monthly increments extending to the end of 2026.

However, in a subsequent decision on May 3, the alliance resolved to fast-track this schedule by three months. This acceleration is aimed at bolstering oil market stability and expediting compensation efforts among the countries involved.

The announced 411,000 bpd increase in July 2025 effectively combines what were originally three separate monthly hikes. Consequently, production quotas initially set for January 2026 will now take effect five months earlier, in July 2025.

For Algeria specifically, oil production will rise to 936,000 barrels per day in July, and will progressively reach 1.007 million barrels per day by July 2026, as outlined in the OPEC document.

Nonetheless, the group emphasized that the production ramp-up remains subject to ongoing market assessments and may be adjusted or suspended depending on evolving conditions. To that end, ministers also agreed to continue holding monthly meetings to monitor compliance, market dynamics, and progress on compensation mechanisms.

The next ministerial session is scheduled for July 6, 2025.

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