Some OPEC+ producers confirm submission of compensation plans to OPEC

Two of the eight OPEC+ countries implementing 2.2 million b/d of voluntary cuts, the UAE and Iraq, confirmed March 19 that they had submitted plans to compensate for crude overproduction.

OPEC is looking to improve compliance to quotas and compensation plans as Dated Brent trades at around $72/b, and ahead of the group's plan to gradually ease voluntary cuts from April.

The UAE and Iraq have submitted their plans, delegates said, but have not provided details about their resulting production targets.

The OPEC Secretariat and delegates from other voluntary cutters did not respond to requests for comment. The group also includes Saudi Arabia, Russia, Kuwait, Kazakhstan, Algeria and Oman.

OPEC said previously that overproducers would submit compensation plans by March 17, and these would be published on its website.

Overproducers are expected to frontload compensation plans, which will be implemented by the end of June 2026.

Compensation has been a key point of tension over the past year, and comes under closer scrutiny when prices slump. Platts, part of S&P Global Energy assessed Dated Brent at $71.73/b on March 18 -- down from 2025 highs of $83/b in mid-January.

Prices have fallen on fears over the impact of growing global trade tensions, weak Chinese demand and the risk of a US recession.

Compliance woes

Iraq and the UAE both overproduced in February, according to the Platts OPEC+ survey by S&P Global Energy.

The UAE produced 3.05 million b/d in February, above its quota of 2.91 million b/d, and Iraq produced 4.07 million b/d, above its quota of 4 million b/d, the survey showed.

Overall the group's output in February jumped 440,000 b/d month over month to 40.98 million b/d.

Production could increase further in the coming months if the group sticks to its plan to bring some barrels back to market from April. After delaying the move repeatedly, OPEC said March 3 that it would now go ahead with the plan, citing "healthy market fundamentals."

The cutters are expected to start with around 180,000 b/d of additional production from April, although compensation plans could alter that total.

However, some delegates told Platts on condition of anonymity that the taper was a gamble on the tightness of the crude market, which OPEC has long maintained in contrast to other agencies, including the International Energy Agency.

These plans could be amended if the group thinks that market conditions require a change in strategy.

The next meeting of the Joint Ministerial Monitoring Committee that oversees the OPEC+ crude production agreement is scheduled for April 5. A full OPEC+ ministerial meeting is slated for May 28.