OPEC+ Countries Convene In Riyadh To Reinforce Oil Market Stability Through Extended Cuts

Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman convened in Riyadh during the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM). The gathering aimed to reinforce precautionary measures to support the stability and balance of oil markets.

These countries decided to extend the additional voluntary cuts of 1.65 million barrels per day, announced in April 2023, until the end of December 2025. Additionally, they will prolong the voluntary cuts of 2.2 million barrels per day, announced in November 2023, until the end of September 2024. This cut will then be gradually phased out on a monthly basis until September 2025.

The monthly increase can be paused or reversed depending on market conditions. The meeting welcomed pledges from Iraq, Russia, and Kazakhstan to achieve full conformity and resubmit their updated compensation schedules for overproduced volumes since January 2024 before the end of June 2024.

According to the table attached to the statement, the required production levels were agreed upon at the 37th OPEC and non-OPEC Ministerial Meeting before implementing the additional voluntary cuts announced in April and November 2023.

The required production level for the United Arab Emirates has been increased by 300,000 barrels per day. This increase will be implemented gradually from January 2025 until the end of September 2025.

Russia is working with secondary sources to update its production figures as assessed by these sources. The table provides an explanation of production levels with the return of voluntary reduction quantities for November 2023 only, which will be applied from October 2024 until September 2025.

The meeting underscored transparency and collaboration among member countries. The commitment to market stability remains a priority as these nations navigate fluctuating market conditions.

The decisions taken at this meeting reflect a collective effort to maintain balance in global oil markets while accommodating necessary adjustments based on evolving circumstances.

The next steps involve monitoring compliance with these agreements and making necessary adjustments to ensure continued market stability.

The attached table provides detailed insights into production levels and adjustments agreed upon during this significant meeting.

The collaborative efforts of OPEC+ countries aim to ensure a stable and balanced oil market environment moving forward.

With inputs from SPA