OPEC+ nations have agreed to delay the end of the group’s voluntary oil production cuts the additional voluntary production of 1.65 million barrels per day until December 2026.
The extension of the oil production cuts has been caused by a combination of weakening oil demand and booming production outside the group.
The group plans to continue the voluntary reductions of 2.2 million barrels per day announced in November 2023, until March 2025, which will then be phased out gradually until the end of September 2026, subject to market conditions.
The group, led by Saudi Arabia and comprised of the UAE, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, was due to increase output by 180,000 barrels per day (bpd) in December, a move originally intended to take place in October due to weaker demand and that has now been delayed to next spring.
The alliance also emphasised its cautious and proactive approach to ensuring market stability amid pressures from weak global demand and increased production by non-member countries.
The member nations further agreed to resubmit their updated compensation schedules for overproduced volumes since January 2024 to the OPEC Secretariat by the end of December 2024. The compensation period has been extended until June 2026.
