OPEC+ group decides to extend production cuts for another year
The OPEC+ group, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, has decided to extend the production cuts, which were set to expire at the end of the year, for another year.
AA
The 37th OPEC and non-OPEC Ministerial Meeting, where energy and oil ministers from OPEC, led by Saudi Arabia, and non-OPEC oil-producing countries, led by Russia, gathered online to assess market conditions, has concluded.
According to the statement made by OPEC, the total production volume of member countries for the coming year will be 39 million 725 thousand barrels per day.
Additionally, the United Arab Emirates (UAE) will increase its production by 300 thousand barrels per day. This increase will be implemented gradually between January and September of next year.
Thus, with the arrangements made, the group will continue its production cuts until December 31, 2025.
The group's next OPEC and non-OPEC Ministerial Meeting will be held on December 1.
While no information was provided regarding the voluntary production cuts implemented by some member countries, these are expected to be announced by the countries individually.
PRODUCTION CUTS
It is estimated that the group is currently implementing a supply cut of 5.86 million barrels per day. This amount, which corresponds to approximately 5.7 percent of global demand, consists of the total production cuts announced by member countries at different times since the end of 2022.
The OPEC+ group had decided on a production cut of 2 million barrels per day at its meeting on October 5, 2022. Later, on April 3, 2023, it was announced that in addition to this cut, some member countries would go for a voluntary production cut of a total of 1.66 million barrels per day starting from May.
At its meeting on June 4, 2023, the group agreed to continue these production cuts, which reached 3.66 million barrels per day, until the end of 2024.
In addition to these, Saudi Arabia, Kuwait, the UAE, Oman, Kazakhstan, Iraq, Russia, and Algeria had decided in November 2023 to voluntarily go for a total production cut of 2.2 million barrels per day in the first quarter of this year. This production cut was later extended until the end of June.