OPEC+ Alliance Reaffirms Commitment to Market Stability Amid Positive Outlook for Oil Markets

The eight member countries of the OPEC+ alliance recently met and announced additional voluntary adjustments in April and November 2023. These members, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, have scheduled a virtual meeting on March 3, 2025, to review the global market conditions and future expectations.

Considering the market fundamentals and positive outlook, the countries reaffirmed their agreed decision on December 5, 2024, regarding the gradual and flexible return to voluntary production adjustments totaling 2.2 million barrels per day starting from April 1, 2025. The flexibility will be maintained to align with market developments.

As a result, the gradual increase may be suspended or reversed based on market conditions, providing the necessary flexibility for market stability. Additionally, the eight countries reiterated their full collective commitment to complying with the additional voluntary production adjustments agreed upon during the 53rd Joint Ministerial Monitoring Committee (JMMC) meeting on April 3, 2024.

Furthermore, the countries affirmed their intention to fully compensate for any production volumes exceeding the designated quotas since January 2024, in accordance with the compensation plans submitted to the OPEC Secretariat. All compensations are set to be completed by June 2026.

Countries that have exceeded their allocated production have agreed to expedite their compensation, ensuring that the excess production quantities are compensated for in the early months of the compensation period. These countries will submit updated compensation schedules to the OPEC Secretariat by March 17, 2025, which will be published on the Secretariat’s website.