OPEC+ countries, which previously announced additional voluntary cuts in April and November 2023, including the UAE, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, held a virtual meeting today, during which the eight member countries affirmed their collective determination to ensure full compliance with the voluntary production adjustments.
The group includes Iraq and Kazakhstan, which have overproduced since January 2024, but have strongly confirmed their commitment to the agreement and compensation schedules submitted to the OPEC Secretariat as agreed at the 53rd JMMC meeting on 3 April 2024.
In August 2024, Saudi Arabia, Russia, the UAE, Kuwait, Algeria and Oman held ministerial discussions with Iraq and Kazakhstan, urging the two countries to achieve full compliance and compensate for overproduction since January 2024.
Iraq and Kazakhstan pledged to engage with secondary sources to determine their plans for production adjustments to achieve compliance and meet the compensation schedules they submitted to the OPEC Secretariat on August 22.
Iraq and Kazakhstan reinforced their commitment during visits by the OPEC Secretary General in late August, conducted in coordination with the Saudi Energy Minister and the Chair of OPEC and non-OPEC Ministerial Meetings. During those visits, the OPEC Secretariat organized workshops with secondary sources where both countries provided extensive details on the immediate and concrete measures they are implementing to achieve full compliance with their required production levels and meet their compensation schedules for August and September.
These measures included enhancing field maintenance plans and reducing production, in addition to delaying and cancelling spot sales for August.
Moreover, the two countries committed to adjusting plans to compensate for any excess production in August.
In recognition of this renewed commitment, the eight participating countries agreed to extend the additional voluntary production cuts of 2.2 million barrels per day for two months until the end of November 2024. After this these cuts will be phased out on a monthly basis from 1 December 2024, with the flexibility to pause or reverse the adjustments as necessary.
The excess producing countries also reaffirmed their commitment to compensate for the full volume of excess production by September 2025.