OPEC+ Countries Extend Voluntary Oil Production Cuts

The OPEC Secretariat has announced that eight OPEC+ countries have agreed to extend their voluntary production adjustments by an additional month. This extension will push the cutoff to December 2024 from the earlier November 2023 deadline.

The Eight Key Countries in the Agreement

Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman were the nations that initially agreed to the initial voluntary adjustments back in April and November 2023. They chose to retain these earlier decisions but extended their duration until the end of 2024.

The Declaration of Cooperation

As part of their commitment to the Declaration of Cooperation (DoC), these countries have agreed to ensure full compliance with its provisions. Particularly significant are the follow-up steps to the JMMC’s 53rd meeting held on April 3rd, 2024. This included regular monitoring of the additional voluntary adjustments and planning to compensate for overproduced volumes since January 2024.

Compensation Plan for Overproduction

Iraq and Russia (alongside Kazakhstan) have jointly reaffirmed their dedication to these production cuts and their compensation timelines. By September 2025, they aim to fully make up for the overproduced volumes that occurred between January and December 2024.

Impact and Implications

This extension and the recommitment by the eight OPEC+ countries serve as another significant development in global oil market dynamics. The decision underscores the collective commitment to stability and market balance in the coming months, with a particular focus on the post-pandemic recovery and energy demand restabilization.

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