The 22 members of the Organization of the Petroleum Exporting Countries + agreed this Sunday on the extension until the end of 2025 of their current production cuts to support oil prices, undermined by numerous uncertainties.
From January 1 to December 31, 2025
The group will “extend the level of crude oil production” of members of the Organization of the Petroleum Exporting Countries and their allies “from January 1, 2025 to December 31, 2025,” the alliance said in a statement. at the end of a biannual meeting in a unique hybrid format, between Riyadh and videoconference.
These alliance-wide cuts amount to some two million barrels per day (bpd). Adding to this the additional voluntary reductions of certain members, OPEC + is currently keeping almost six million barrels underground. This strategy, started at the end of 2022 in the face of falling prices, aims to take advantage of the scarcity of supply to boost prices.
Emirates: production target increased
In addition to this extension, OPEC + agreed to increase the United Arab Emirates’ production target by 300,000 bpd. Abu Dhabi is one of the countries which have agreed to further tighten the valves, at the call of Saudi Arabia, wishing to share the burden of the cuts. This quota increase therefore allows it to keep facade cuts, while increasing its volumes.
Saudi Arabia and Russia, the two pillars of the group, as well as Algeria, Oman, Kazakhstan, Kuwait and Iraq have also made additional efforts this year which should be renewed in 2025, according to the table put online by OPEC+. No figures have been given at this stage, as countries generally communicate separately.
The 22 ministers of the Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and their allies led by Moscow, who entered into an agreement called OPEC + in 2016 to better influence the market, met in a unique format, some having traveled to Riyadh and others participating by videoconference.
