The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed on Sunday to extend their group-wide output cuts to the end of 2025.
The decision came during the 37th OPEC and non-OPEC ministerial meeting to discuss the production volume of the member countries.
According to OPEC's statement issued after the meeting, OPEC+ highlighted the cooperation in order 'to achieve and sustain a stable oil market, and to provide long-term guidance and transparency for the market.'
The overall crude oil production for OPEC and non-OPEC participating countries in the Declaration of Cooperation will be around 39.72 million barrels per day (bpd) starting Jan. 1, 2025, until Dec. 31, 2025.
Production by the United Arab Emirates (UAE) increased by 300,000 bpd and will be phased in gradually from January 2025 until the end of September 2025.
The next meeting of OPEC and non-OPEC members is scheduled for Dec. 1.
- Voluntary cuts
Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman met in person in Riyadh on the sidelines of the 37th OPEC and non-OPEC ministerial meeting, according to a separate statement by the OPEC.
The countries decided to prolong the additional voluntary cuts of 1.65 million bpd, announced in April 2023, until the end of December 2025.
Moreover, the countries agreed to extend their additional voluntary cuts of 2.2 million bpd, announced in November 2023, until the end of September 2024. However, the 2.2 million bpd cut will be gradually phased out monthly until the end of September 2025.
'This monthly increase can be paused or reversed, subject to market conditions,' the statement read.
The group, which made a series of deep output cuts since the end of 2022, is currently cutting supply by around 5.8 million bpd.
The cuts include 2 million bpd by all member countries, the first round of voluntary cuts of about 1.6 million bpd by nine members, and the second round of voluntary cuts of 2.2 million bpd by eight members.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr