Riyadh, November 4, 2024 – The OPEC Secretariat has announced that the eight OPEC+ countries—Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman—have reached an agreement to extend their voluntary production adjustments of 2.2 million barrels per day, originally set to begin in November 2023. This extension will remain in effect for one additional month, concluding at the end of December 2024.
This decision underscores the collective commitment of the participating nations to uphold the Declaration of Cooperation, a framework designed to promote stability in the global oil market. The additional voluntary adjustments, which were previously discussed and agreed upon in April and November 2023, aim to manage production levels effectively and support market equilibrium. The Joint Ministerial Monitoring Committee (JMMC) is tasked with overseeing these adjustments, ensuring compliance and effective implementation throughout the period.
In their recent discussions, the member countries reiterated their dedication to achieving full conformity with the established production levels, as well as their responsibility to compensate for any overproduction that has occurred since January 2024. Each member state is expected to follow the compensation plans submitted to the OPEC Secretariat, with a commitment to fully address any discrepancies by September 2025.
Additionally, the meeting highlighted supportive statements from Iraq, along with a joint declaration from Russia and Kazakhstan, reaffirming their adherence to the agreement and their respective compensation schedules. This unified stance among the OPEC+ nations illustrates a strong resolve to navigate the complexities of the global oil landscape while fostering cooperation and mutual support among member states.
As the oil market continues to evolve, the commitment of these countries to voluntary production adjustments and compensation strategies plays a crucial role in stabilizing prices and ensuring a balanced supply that benefits both producers and consumers alike. The extension of these measures reflects a proactive approach to managing market dynamics and enhancing collaboration within the OPEC+ framework.