OPEC plus countries which announced additional voluntary cuts in April 2023 and November 2023 including Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman held a meeting in person in Riyadh on the sideline of the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM).
The meeting was conducted to reinforce the precautionary efforts of OPEC+ countries, aiming to support the stability and balance of oil markets. The aforementioned countries decided, in addition to the latest decisions from the 37th ONOMM, to extend the additional voluntary cuts of 1.65 million barrels per day that were announced in April 2023, until the end of December 2025.
Moreover, these countries will extend their additional voluntary cuts of 2.2 million barrels per day, that were announced in November 2023, until the end of September 2024 and then the 2.2 million barrels per day cut will be gradually phased out on a monthly basis until the end of September 2025 to support market stability as per the attached table. This monthly increase can be paused or reversed subject to market conditions.
In the spirit of transparency and collaboration, the meeting welcomed the pledges made by the Republic of Iraq, the Russian Federation and the Republic of Kazakhstan to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since Jan 2024 before the end of June 2024 as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee (JMMC).
Production Levels with the Phase-out of only November 2023 Voluntary cuts which will be applied starting from October 2024 until September 2025
(1) Required production levels as per the 37th ONOMM before applying the additional voluntary cuts announced in April 2023 and November 2023
(2) UAE required production has been increased by 300 kbd. This increase will be phased in gradually starting January 2025 until the end of September 2025 as per the 37th ONOMM.
(3) This is the required production level as per 37th ONOMM as assessed by the secondary sources, and Russia is working with secondary sources to update production figures.
