OPEC+ Increases Oil Production Amid Declining Russian Revenues

The OPEC+ countries, which include Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, have decided to increase oil production by 411,000 barrels per day in May 2025. This decision is part of a plan to return to normal production levels after a voluntary reduction of 2.2 million barrels per day announced in 2023.

This is reported by AgroReview

Additionally, a reduction of 1.65 million barrels per day, agreed upon at the beginning of 2023, will continue until December 2026. The increase in production in May will be nearly double what was previously expected. The price of oil has already fallen by more than 4% following the tariffs imposed by the Trump administration and continued to decline after OPEC’s announcement.

Against this backdrop, the Russian Ministry of Finance reported a 17% decrease in budget revenues from oil and gas in March 2025 year-on-year, amounting to 1.08 trillion rubles (approximately 13 billion USD). This decline is linked to forced discounts on Russian oil caused by the tightening of American sanctions and the sharp strengthening of the ruble.

“These revenues were impacted by forced discounts on Russian oil due to the tightening of American sanctions,” the Russian Ministry of Finance noted in its report.