Riyadh, December 7, 2024 – In a significant move to maintain stability in global oil markets, OPEC+ countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, convened for a virtual meeting on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM). The meeting was held to reinforce the precautionary measures and collective efforts of the group in ensuring the sustained balance and stability of the oil market amidst ongoing global uncertainties.
One of the key outcomes of the meeting was the extension of additional voluntary production adjustments that were initially announced in 2023. Specifically, the countries reaffirmed their commitment to extend the reduction of 1.65 million barrels per day, a decision first made in April 2023, until the end of December 2026. This extension highlights the group's continued focus on proactively managing oil production to maintain market stability over the long term.
Additionally, the countries also agreed to extend the 2.2 million barrels per day voluntary production adjustment, which was first introduced in November 2023, until March 2025. Following this, the 2.2 million barrels per day adjustment will be gradually phased out on a monthly basis, with the full phase-out scheduled for completion by September 2026. The phased withdrawal of this adjustment is designed to allow for a gradual return to equilibrium in the market. However, the meeting emphasized that these adjustments could be paused or reversed depending on prevailing market conditions.
In the spirit of transparency and cooperation, the meeting also welcomed the pledges made by overproducing countries to achieve full conformity with agreed production targets. These countries are required to submit updated compensation schedules to the OPEC Secretariat for overproduced volumes since January 2024. This resubmission is to be completed before the end of December 2024, in accordance with the agreement made at the 52nd meeting of the Joint Ministerial Monitoring Committee (JMMC). To further support market stability, the compensation period for these adjustments will be extended until June 2026, ensuring that all countries meet their production commitments.
This meeting underscores the OPEC+ group’s ongoing commitment to a balanced and stable oil market, underscoring the importance of continued cooperation, transparency, and proactive market management in the face of global economic challenges.