Cuts extended to support market stability OPEC+ has postponed the dismantling of 2.2 million barrels per day (b/d) in production cuts until April 2025, aiming to stabilize the oil market, according to Argus.
Longer recovery periodT he return of the cuts will now take 18 months instead of the previously planned 12 months, further spreading the impact over time.
UAE’s production increase delayed The United Arab Emirates will see its planned production increase of 300,000 b/d phased in over 18 months starting in April 2025, rather than over 9 months beginning January 2025.
Offset cuts extended Members with excess production must now implement offsetting cuts by June 2026, extended from the original deadline of September 2025.
Additional cuts extended Two key cut agreements remain:
A 2 million b/d group-wide cut
1.65 million b/d of voluntary cuts by nine members.These will now remain until the end of 2025.
Quota revisions delayed Updates to members' official crude production capacities, which affect quota calculations, have been pushed back to 2027.
What this means:
These decisions reduce the immediate supply of oil in global markets, supporting prices and ensuring market stability. By spreading out production increases and keeping key cuts in place, OPEC+ is signaling caution amidst uncertain market conditions.
OPEC+ members
OPEC (Organization of the Petroleum Exporting Countries) is an organization that includes several oil-producing countries. OPEC+ is an extension of OPEC that includes additional countries that are not OPEC members.
The countries that make up OPEC+ are:
OPEC member countries
Saudi Arabia
Iran
Iraq
Kuwait
Venezuela
Algeria
Angola
Republic of the Congo
Equatorial Guinea
Gabon
Libya
Nigeria
United Arab Emirates
Additional OPEC+ members
Russia
Kazakhstan
Azerbaijan
Malaysia
Mexico
Bahrain
Brunei
Oman
Sudan
South Sudan
OPEC was founded in 1960 with the aim of coordinating and unifying the petroleum policies of its members to ensure fair and stable prices in the oil market. OPEC+ was formed in 2016 to collaborate on regulating global oil supply, including the aforementioned countries that play a significant role in oil production but are not part of OPEC.
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