The Organization of the Petroleum Exporting Countries and allies led by Russia (together known as Opec+) have reached an agreement to extend most of its deep oil output cuts well into 2025 as the group seeks to shore up the market amid tepid demand growth and high interest rates.

 

As per the pact sealed at the 37th Opec and non-Opec Ministerial Meeting, the level of overall crude oil production for Opec and non-Opec Participating Countries in the Declaration of Cooperation (DoC) will be extended starting from January 1 2025 until December 31.

 

Participating countries also agreed to grant the UAE a new reference production level of 3.519 million barrels per day in 2025, equivalent to an increase of 300,000 barrels per day, to be gradually implemented from January 2025 to September 2025.

 

The total voluntary cuts adopted by some member countries reached 2.2 million barrels per day, while the total cuts of Opec+ members amount to 5.86 million barrels per day, which have been extended until the end of next year.

 

According to Opec, the participating countries have decided to reaffirm the framework of the DoC, signed on December 10, 2016 and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on July 2, 2019.

 

The members also agreed to extend the assessment period by the three independent sources to the end of November 2025, to be used as guidance for 2026 reference production levels.

 

Also they would reaffirm the mandate of the Joint Ministerial Monitoring Committee (JMMC) to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC, assisted by the Joint Technical Committee (JTC) and the Opec Secretariat. The JMMC meeting is to be held every two months.

 

The members also agreed to hold the Opec and non-Opec Ministerial Meeting every six months in accordance with the ordinary Opec scheduled conference with next meeting set for December 31.-TradeArabia News Service