OPEC Signals Readiness to Boost Oil Output After U.S. Sanctions on Russia
OPEC is prepared to further roll back its oil production cuts if needed to offset potential market shortages following the United States’ new sanctions on major Russian energy firms, Kuwait’s oil minister said on Thursday.
In a major policy shift, U.S. President Donald Trump imposed fresh sanctions on Russia’s top oil producers, Lukoil and Rosneft, marking Washington’s toughest economic action against Moscow since the invasion of Ukraine.
Oil Prices Surge on Sanctions News
Global oil prices jumped by nearly 5% on Thursday after the sanctions announcement, with reports suggesting India may consider reducing Russian imports in response to the tightening restrictions.
Kuwaiti Oil Minister Tariq Al-Roumi said the decision will likely boost global prices:
“I expect that any decision to impose sanctions will certainly have a positive impact on prices,” he told Reuters.
Al-Roumi added that the sanctions could trigger a shift in demand toward the Gulf and Middle East, noting early signs of increased interest in regional supplies.
OPEC+ Moves to Regain Market Share
Kuwait is among seven OPEC+ nations that have been gradually increasing oil production after years of coordinated output cuts designed to stabilize markets. The broader OPEC+ alliance, which includes Russia and several smaller producers, collectively accounts for about half of global oil output.
The group has reversed its strategy this year, aiming to regain market share and meet President Trump’s call for higher output to help ease gasoline price pressures.
So far in 2025, OPEC+ has raised production targets by over 2.7 million barrels per day (bpd) — equivalent to roughly 2.5% of global demand.
At its October 5 meeting, the alliance confirmed plans to increase production from November by 137,000 bpd, signaling flexibility and readiness to stabilize supply in case of further disruptions caused by sanctions or geopolitical tensions.
