The eight OPEC+ countries, including the UAE, reaffirmed their decision, to proceed with a gradual and flexible return of the 2.2 mbd voluntary adjustments starting on April 1, 2025, while remaining adaptable to evolving conditions. The decision was made on December 5, 2024. The countries convened virtually to evaluate global market conditions and the future outlook, according to a recent OPEC statement.
Previously, the eight OPEC+ countries announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman.
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Gradual increase may be paused
Consequently, this gradual increase may be paused or reversed depending on market conditions. This flexibility will enable the group to continue supporting oil market stability.
Furthermore, the eight countries reiterated their collective commitment to full conformity with the additional voluntary production adjustments as agreed upon during the 53rd JMMC meeting on April 3, 2024. They also confirmed their intention to fully compensate for any overproduced volumes since January 2024, in accordance with the compensation plans submitted to the OPEC Secretariat, ensuring that all compensations are completed by June 2026.
Frontloading compensation plans
The countries with overproduced volumes have also agreed to frontload their compensation plans, ensuring that a larger portion of the overproduced volumes is compensated in the earlier months of the compensation period. They will submit their updated compensation schedules to the OPEC Secretariat by March 17, 2025, which will be published on the Secretariat’s website.
