OPEC+ Extends Oil Production Cuts Through December 2024 to Ensure Market Stability

The OPEC Secretariat has announced that eight OPEC+ member countries—Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman—have agreed to extend voluntary production cuts of 2.2 million barrels per day (bpd) for an additional month, extending the reductions through December 2024. These adjustments, initially announced in November 2023, reflect the group’s ongoing efforts to manage global oil supply.

This decision follows previous voluntary cuts enacted by the same nations in April and November 2023. The eight countries have reiterated their collective dedication to full compliance with the Declaration of Cooperation, including adhering to the additional production adjustments, which are monitored by the Joint Ministerial Monitoring Committee (JMMC). During its 53rd meeting on April 3, 2024, the JMMC reviewed these commitments, with member countries reaffirming their pledge to offset excess production from January 2024 by September 2025, as outlined in compensation plans submitted to the OPEC Secretariat.

In recent statements, Iraq, along with Russia and Kazakhstan, reaffirmed their commitment to this agreement, including adherence to the voluntary production cuts and the specified compensation schedules for overproduction since January 2024. In August 2024, Saudi Arabia, Russia, the UAE, Kuwait, Algeria, and Oman conducted two ministerial consultations with Iraq and Kazakhstan, urging these countries to ensure full compliance and address the excess production volumes accumulated since the beginning of the year. Iraq and Kazakhstan confirmed their intentions to work with secondary sources to detail their plans for aligning production with the agreed targets and adhering to the compensation schedules they submitted to the OPEC Secretariat on August 22.

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