OPEC+ Extends Production Cuts Through 2026

According to the OPEC press release, OPEC+ countries Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, which previously announced additional voluntary adjustments in April 2023 and November 2023 held a virtual meeting on the sideline of the 38th ONOMM.

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On December 5, OPEC and its non-OPEC partners, collectively known as OPEC+, decided to extend the current crude oil production levels until December 31, 2026, in line with the agreements made at the 35th OPEC+ Ministerial Meeting, The Caspian Post reports citing foreign media.

The decision was made during the 57th meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM), which took place on Dec. 5 via videoconference.

According to the OPEC press release, OPEC+ countries Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, which previously announced additional voluntary adjustments in April 2023 and November 2023 held a virtual meeting on the sideline of the 38th 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 38th ONOMM, to extend the additional voluntary adjustments of 1.65 million barrels per day that were announced in April 2023, until the end of December 2026.

Moreover, these countries will extend their additional voluntary adjustments of 2.2 million barrels per day, that were announced in November 2023, until the end of  March 2025 and then the 2.2 million barrels per day adjustments will be gradually phased out on a monthly basis until the end of September 2026 to support market stability as per the attached table. This monthly increase can be paused or reversed subject to market conditions,” reads the OPEC statement.

The compensation period will be extended until the end of June 2026.

The 39th OPEC and non-OPEC Ministerial Meeting is scheduled for May 28 next year.