OPEC+ extends oil production agreement until 2026
The 57th meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM) were held on December 5, 2024, Kazinform News Agency has learnt from the press service of the Kazakh Ministry of Energy.
The meeting participants reaffirmed their commitment to the fundamental tenets of the agreement and resolved to extend the current oil production levels for OPEC and non-OPEC countries in accordance with the resolutions of the 35th ONOMM until December 31, 2026.
The participating countries underscored the necessity of strict adherence to the commitments made and the provision of compensation for instances of over-fulfillment.
In a separate meeting held on the sidelines of the 38th ONOMM, eight countries (Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman) that had previously announced voluntary additional oil production cuts for April and November 2023, took part in the discussions.
It is reported that the meeting was held with the objective of reinforcing the precautionary measures of OPEC+ member countries with a view to maintaining stability and equilibrium in the oil market.
The mentioned countries have opted to prolong the supplementary voluntary reductions of 1.65 million barrels per day (bpd) that were initiated in April 2023 until December 2026. Furthermore, the 2.2 million bpd reductions initially scheduled to conclude in November 2023 have been extended until the end of March 2025. Subsequently, the aforementioned reductions will be phased out in a gradual manner, with a reduction in the monthly volume of cuts occurring until the end of September 2026. This is intended to ensure the maintenance of market stability. It is acknowledged that this process may be subject to suspension or cancellation in accordance with prevailing market conditions.
The period of compensation will continue until June 2026.
Earlier, Russia, Kazakhstan and Saudi Arabia confirmed plans to cut oil production.
Furthermore, the Ministry of Energy has announced that Kazakhstan will provide compensation for overproduction of oil in accordance with the OPEC+ agreement until 2025.
