ALMATY – Eight OPEC+ countries, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, agreed to gradually resume oil production adjustments during a virtual meeting held on March 1, reported the organization’s press service.
Photo credit: Reuters
The countries that had previously announced additional voluntary production adjustments in April and November 2023 reviewed global market conditions and the outlook. Participants noted a steady global economic outlook and healthy oil market fundamentals, reflected in relatively low global crude inventories.
In this context, the eight countries decided to begin unwinding the additional voluntary production cuts of 1.65 million barrels per day (bpd) announced in April 2023. They agreed on a production adjustment of 206,000 bpd to be implemented in April 2026.
The group emphasized that the return of 1.65 million bpd could proceed in part or in full, depending on evolving market conditions, and would be carried out gradually. The countries reaffirmed their commitment to maintaining flexibility, including the option to increase, pause or reverse the phase-out of voluntary adjustments if necessary. This includes the possibility of reversing previously implemented voluntary cuts of 2.2 million bpd announced in November 2023.
The eight producers underscored that the decision provides participating countries with an opportunity to accelerate compensation for any previously overproduced quantities. They reiterated their collective commitment to full compliance with the Declaration of Cooperation, with monitoring carried out by the Joint Ministerial Monitoring Committee (JMMC).
The countries also confirmed their intention to fully compensate for any overproduced volumes since January 2024. The group will continue to hold monthly meetings to review market conditions, compliance, and compensation levels. The next meeting is scheduled for April 5.
