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OPEC+ alliance decides to extend production cuts until the end of December 2026

05-12-2024

The OPEC+ alliance decided on Thursday to extend current oil production cuts until December 2026 with the aim of stabilizing global oil markets amid ongoing challenges. The OPEC Secretariat said in a statement that this came at the conclusion of the alliance's 38th ministerial meeting, where member states agreed to extend current oil production cuts until December 2026 based on what was agreed upon at the 35th ministerial meeting. The statement added that the member states also decided to extend the voluntary cuts of 2.2 million barrels per day until the end of March 2025, noting that starting from April 2025, these quantities will be gradually reduced over a period of 18 months until September 2026. In this context, it explained that the eight countries participating in the voluntary cuts, namely Kuwait, Saudi Arabia, the UAE, Oman, Iraq, Algeria, Russia and Kazakhstan, agreed to extend the cuts of 2.2 million barrels per day until the end of March 2025, with the next phase of the gradual reduction starting in April 2025. In addition, these countries decided to extend additional cuts of 1.65 million barrels per day that were agreed upon in April 2023 until December 2026. The statement stated that the eight countries making voluntary cuts held a virtual meeting within the framework of the 38th Ministerial Meeting of OPEC and non-member states, where they decided to extend the voluntary cuts until the end of the first quarter of next year. The final statement stressed that these decisions come within the framework of the alliance's commitment to a cautious and proactive approach to ensure the stability of the oil market in light of the pressures resulting from weak global demand and increased production from non-member countries of the alliance. The statement also stressed the commitment of member states to the framework of the (Declaration of Cooperation) signed in December 2016 and the (Cooperation Charter) signed in July 2019, while emphasizing the role of the Joint Ministerial Monitoring Committee in monitoring market developments and compliance levels and granting it additional powers to hold extraordinary meetings if necessary. At the end of the meeting, the ministers expressed their deep thanks to the Kingdom of Saudi Arabia, led by the Minister of Energy, Prince Abdulaziz bin Salman, for its exceptional efforts in enhancing market stability and achieving consensus within the alliance. The date of the 39th Ministerial Meeting of the OPEC + Alliance was also set for May 28 to discuss market developments and update production policies in line with the changes.