OPEC+ Members Extend Voluntary Production Cut to 2026
The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have decided to extend its production cut until the end of 2026.
In the 38th OPEC and non-OPEC ministerial meeting, the member countries agreed to reach their total production of 39.72 million barrels per day (bpd) for the upcoming year.
The meeting reaffirmed the crude oil production adjustments agreed during the 35th OPEC Ministerial Meeting, which will remain in effect until Dec. 31, 2026.
It also reaffirmed framework of the DoC signed on Dec. 10, 2016, and further endorsed in subsequent meetings, as well as the Charter of Cooperation signed in 2019.
According to the meeting, this framework remains a cornerstone of OPEC’s strategic approach to balancing global supply and demand dynamics.
It emphasized the critical importance of full conformity with production levels and the implementation of a robust compensation mechanism to enhance transparency and preserve market equilibrium.
The United Arab Emirates (UAE) will increase its production by 300,000 bpd, with this increase being gradually implemented between April 2025 and September 2026.
In line with these adjustments, the group will continue its daily 2 million bpd oil production cut until Dec. 31, 2026. The next meeting of the group is scheduled for May 28, 2025.
In another statement, OPEC announced the decision to extend the voluntary production cuts of 1.65 million bpd, implemented by certain countries, until the end of December 2026.
Moreover, Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman have voluntarily extended their combined production cuts of 2.2 million bpd until the end of March 2025. These countries will gradually scale back the voluntary cuts from April 2025 through September 2026.
The group is currently implementing a supply reduction of approximately 5.85 million bpd, which corresponds to about 5.7% of global demand. This reduction is the total of various production cuts announced by the member countries since the end of 2022.
OPEC+ first decided on a 2 million bpd production cut during its October 2022 meeting. In April 2023, in addition to the initial cuts, some member countries announced voluntary cuts of approximately 1.65 million bpd starting in May 2023.
At the June 2023 meeting, the group extended the production cuts of around 3.65 million bpd until the end of 2024, and agreed in June 2024 to extend the cuts for another year, until the end of 2025.
In November 2023, Saudi Arabia, Kuwait, UAE, Oman, Kazakhstan, Iraq, Russia, and Algeria additional voluntarily agreed to implement a total production cut of 2.2 million bpd for the first quarter of 2024. However, the voluntary cut was extended first to end of June, then end of October and then until the end of the year. #OPEC+ Members Extend Voluntary Production Cut to 2026#
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