The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, have announced plans to extend production cuts and introduce a phased increase for some member states.
Eight OPEC+ members, including Saudi Arabia and Russia, will extend their voluntary production cuts beyond their original June 2024 expiration date.
These additional cuts, totaling 2.2 million barrels per day (mbpd), will be extended until the end of September 2024.
Following this, a gradual monthly increase will be implemented, completely phasing out the cuts by September 2025.
Separate Decision Extends Binding Cuts Until 2025
In a related announcement, OPEC+ also confirmed the extension of previously agreed-upon, binding production cuts until December 31, 2025. These mandatory cuts were initially established in 2022 and 2023.
The decision also includes a production quota increase for the United Arab Emirates (UAE). Their quota will be adjusted upwards by 300,000 barrels per day. The production limits and adjustments do not apply to Venezuela, Iran, and Libya.
These additional voluntary cuts have been implemented by Saudi Arabia, Russia, Iraq, Kazakhstan, the United Arab Emirates, Kuwait, Oman, and Algeria since November 2023.
