OPEC+ extends oil production cuts until the end of 2025

The OPEC+ group decided to extend the level of total production of crude oil for OPEC member states and non-OPEC countries participating in the Declaration of Cooperation, according to the attached schedule, from January 1, 2025 until December 31, 2025. The period of the evaluation, which is being conducted, has been extended. The three independent sources, until the end of November 2025, and this assessment will be used as guidance in determining production levels for 2026.

The statement explained that in light of the continued commitment by OPEC member states and non-OPEC producing countries, participating in the Declaration of Cooperation, to maintain the stability of oil markets, provide transparency and guide markets in the long term, and based on the precautionary, proactive and preventive approach adopted by countries. Members of OPEC and non-OPEC producing countries participating in the Declaration of Cooperation. The participating countries decided to reaffirm the framework of the Declaration of Cooperation, which was signed on December 10, 2016, and which was confirmed in subsequent meetings, and to reaffirm also the Charter of Cooperation signed in July 2, 2019.

The statement affirmed the reaffirmation of the powers granted to the Joint Ministerial Committee for Production Monitoring, to conduct an accurate assessment of global oil markets, production levels, and the level of commitment to the Declaration of Cooperation, with the support of the Joint Technical Committee and the General Secretariat of OPEC, noting that the meetings of the Joint Ministerial Committee for Production Monitoring will be held every two months. .

It was also agreed to hold a ministerial meeting for OPEC member states and participation from outside it every 6 months, according to the regular OPEC conference schedule. And granting the Joint Ministerial Committee for Production Control the authority to hold additional meetings, or to call for a ministerial meeting of OPEC member states and participation from outside it, at any time, to deal with market developments, whenever it deems this necessary.

It was reiterated that compliance with the Declaration of Cooperation will be evaluated according to the level of production, using the average of the seven additional approved sources, and based on the methodology applied to OPEC member states. Emphasizing the utmost importance of achieving full compliance and compensation mechanism.

The participating countries decided to hold the thirty-eighth ministerial meeting of OPEC member states and participation from outside it on December 1, 2024.

The total cuts by OPEC+ members currently amount to 5.86 million barrels per day, which is equivalent to about 5.7 percent of global demand.

The cuts include 3.66 million barrels per day from OPEC+ members, effective until the end of 2024, and voluntary cuts amounting to 2.2 million barrels per day adopted by some members and ending at the end of June.