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The OPEC+ alliance decides to extend the level of total oil production until the end of 2025

02-06-2024

The member states of the OPEC+ alliance agreed today, Sunday, during their 37th ministerial meeting, to extend the level of total production of crude oil from January 1, 2025 until December 31, 2025. This came in a statement issued by the coalition’s ministerial meeting held in the Saudi capital (Riyadh) with the participation of the Deputy Prime Minister and Kuwaiti Oil Minister, Dr. Imad Al-Ateeqi. The statement stressed that this comes in light of the continued commitment by OPEC member states and non-OPEC producing countries participating in the Declaration of Cooperation to maintain the stability of oil markets and provide transparency and guidance to the markets in the long term and based on the precautionary, proactive and preventive approach adopted by OPEC+ countries. ). The statement reaffirmed the framework of the Declaration of Cooperation signed in December 2016, which was confirmed in subsequent meetings, and also reaffirmed the Charter of Cooperation signed in July 2019. The ministers decided to extend the period of the assessment conducted by the three independent sources until the end of November 2025, and to use this assessment as guidance in determining production levels for the year 2026. The meeting also reaffirmed the powers granted to the Joint Ministerial Committee for Production Monitoring to conduct an accurate assessment of global oil markets, production levels, and the level of commitment to the Declaration of Cooperation, with the support of the Joint Technical Committee and the General Secretariat of OPEC, noting that the meetings of the Joint Ministerial Committee for Production Monitoring will be held every two months. It was also agreed to hold a ministerial meeting of OPEC member states and participating countries from outside it every six months in accordance with the regular OPEC conference schedule. The Joint Ministerial Committee for Production Monitoring was granted the authority to hold additional meetings or call for holding a ministerial meeting for OPEC member states and participating countries from outside it at any time to deal with market developments whenever they deem it necessary. The meeting reaffirmed that commitment to the Declaration of Cooperation will be evaluated according to the level of production, using the average of the seven additional approved sources, and based on the methodology applied to OPEC member states. He stressed the utmost importance of achieving full commitment and the compensation mechanism, and also decided to hold the 38th ministerial meeting of OPEC member states and participation from outside it on December 1, 2024. According to a statement issued by the coalition and distributed by the OPEC secretariat in Vienna, the coalition set its country’s production level at 39.7 million barrels per day from January 1 until December 2025. Economic analysts stated that this decision comes against the backdrop of declining demand for crude oil, weak global economic growth, and to compensate for the high production from many of the alliance’s competitors, especially American shale oil companies, and the fragile economic outlook in the world’s largest oil consumer, China.