Oil: OPEC+ Extends Production Cuts Until End of 2026
Oil exporting countries: “The global oil market is still characterized by weak economic growth; economic and consumption indicators are not very encouraging, especially in developing countries”
The Organization of the Petroleum Exporting Countries (OPEC+), led by Saudi Arabia and Russia, has decided to extend voluntary oil production cuts until the end of 2026, reaffirming a course of action aimed at “stabilizing the energy price situation on the global market amid weak demand and abundant supply.”
In addition to the production cuts, the decision announced in Vienna, Austria, during the 57th meeting of the Joint Ministerial Monitoring Committee and the 38th Ministerial Meeting of OPEC and non-OPEC countries, also calls for “extending production until mid-2026 to compensate for surplus production.” In this context, in addition to the overall reduction, eight OPEC+ member countries, including Saudi Arabia, Russia, the United Arab Emirates, and Algeria, decided to “maintain an additional voluntary reduction of 2.2 million barrels per day until the first quarter of 2025.”
Russia announced that oil production in 2024 and 2025 is expected to be between 518 and 521 million tons. Russian Deputy Prime Minister in charge of energy Alexander Novak told a press conference that “we expect about 518-521 million tons of oil in 2024 and about the same volumes in 2025.”
Thereafter, a gradual increase in production will be implemented starting April 2025, to be completed by September 2026. OPEC+ also confirmed a voluntary production cut of 1.6 million bpd set in April 2023, which will remain in place until the end of 2026.
Participants in the ministerial meetings of oil-producing and oil-exporting countries stressed that “the global oil market is still characterized by weak economic growth, with economic and consumption indicators not very encouraging, especially in developing countries, and by a still uncertain recovery in China.” This general situation, added to by the risky policies of economic transformation in the West, is keeping oil demand relatively low while commercial inventories remain high. For OPEC+ leaders, including Algerian Energy Minister Mohamed Arkab (pictured), “extending the cuts represents a wise and responsible choice.” In a press release, OPEC+ ministers stressed that the organization “will continue to closely monitor market dynamics in order to adapt its strategies to the current situation.”
The energy transition based on scientific principles is one of the central themes of the XVII Verona Eurasian Economic Forum, which is currently taking place in the United Arab Emirates. Pluralia plans to publish a summary of the keynote speech delivered at the forum by Igor Sechin, CEO of Russia’s largest oil company Rosneft.
