Saudi Arabia, other OPEC+ members reaffirm commitment to oil market stability

02/12/2025 02:02 AST

Saudi Arabia and seven other OPEC+ member countries that had previously announced voluntary additional production adjustments in April and November 2023 reaffirmed their decision to suspend production increases during the first three months of 2026 due to seasonal factors.

At a Nov. 30 video meeting, OPEC+ members, including Russia, Iraq and the UAE, alongside Kuwait, Kazakhstan, Algeria, and Oman, reiterated that the 1.65 million-barrel-per-day voluntary cuts may be gradually eased or fully lifted, subject to market conditions.

The participating countries will continue to closely monitor and assess market conditions. As part of their ongoing efforts to support market stability, the eight countries reaffirmed the importance of adopting a cautious approach and retaining full flexibility to continue pausing or reversing additional voluntary production adjustments, including the previous voluntary adjustment of 2.2 million barrels per day announced in November 2023.

They also renewed their commitment to the Declaration of Cooperation, including the additional voluntary adjustments, compliance with which will be monitored by the Joint Ministerial Monitoring Committee. The countries affirmed their determination to fully compensate for overproduced volumes since January 2024.

The eight members will hold monthly meetings to follow up on market developments, compliance levels and the implementation of compensation plans. The next meeting is scheduled for Jan. 4, 2026.

In light of the ongoing commitment by OPEC and non-OPEC participating countries in the Declaration of Cooperation to maintain oil market stability, the participating countries reached several decisions.

They reaffirmed the framework of the Declaration of Cooperation, signed on Dec. 10, 2016, and endorsed in subsequent meetings. They further reaffirmed that the total crude oil production level for OPEC and non-OPEC participating countries, as agreed at the 38th OPEC and non-OPEC Ministerial Meeting, will remain in effect until Dec. 31, 2026.

The participating countries also reaffirmed the authority granted to the JMMC to conduct thorough assessments of global oil markets, production levels and conformity with the Declaration, with support from the OPEC Secretariat. The JMMC will meet every two months and retains the authority to hold additional meetings or call for a Ministerial Meeting at any time to address market developments.

They emphasized the importance of achieving full conformity and adherence to the compensation mechanism.

With reference to the earlier decision tasking the OPEC Secretariat with preparing a methodology for assessing maximum sustainable production capacity to be used as a reference base level for 2027, the participating countries approved the methodology.

They also reaffirmed the framework of the Charter of Cooperation, signed on July 2, 2019, and requested the OPEC Secretariat to prepare and translate into programs a plan to achieve all the Charter's objectives, to be presented at the 41st OPEC and non-OPEC Ministerial Meeting.

The 41st Ministerial Meeting of OPEC and non-OPEC participating countries will be held on June 7, 2026.

Arab News