Saudi Arabia's efforts to enforce production discipline among OPEC+ member countries are being called into question. Kazakhstan does not intend to cut crude output, according to several sources cited by Bloomberg. The Vice Minister of Energy of Kazakhstan, Alibek Zhamauov, stated that the country exceeded its quota by over 300,000 barrels per day in March. The situation threatens to drive down the cost of crude oil and potentially undermine the unity of the alliance itself.
As the agency reports, Kazakhstan and its international oil partners are maintaining production volumes at a stable level. Riyadh must now decide how far it allows oil prices to fall while trying to maintain discipline within the cartel and among its allies.
Last week, OPEC+ led by Saudi Arabia and Russia shocked markets by unexpectedly boosting oil production. This caused oil prices to plummet to a four-year low. Although prices rebounded following US President Donald Trump's decision to postpone new tariffs, they remain 10% lower than they were in early April.
Iraq, on the other hand, appears more responsive to the kingdom's pressure, according to the agency. The country has reduced exports in March and plans further cuts.