OPEC+, the alliance led by Russia and Saudi Arabia, announced last week the decision to postpone the deadline to increase its crude oil supply until April 1, 2025.

As will be recalled, in 2023, the eight countries that make up OPEC+ agreed to a reduction in oil pumping, following in the footsteps of OPEC, which had already announced this measure in a statement.

The reference is to a total of 2.2 million barrels per day (mbd) that Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman “withdrew from the market a year ago and wanted to gradually resume production starting January 1.”

Now, crude oil producers will extend the cuts until the end of March next year and then eliminate them. However, there could be a further extension of the deadline if oil ministers consider that the market is not ready to absorb more barrels.

At the meeting held last Thursday, December 5, the OPEC+ ministerial conference “agreed to extend for one more year, until the end of 2026, the rest of the cuts agreed by 19 of the 22 member countries of the alliance, which total 3.66 mbd.”

The total joint production quota of the 19 countries will remain at 39.725 mbd until December 31, 2026. The exceptions to this commitment are Venezuela, Iran and Libya “due to the involuntary limitations of their oil activity that they face as a result of various causes, such as sanctions or armed conflicts.”

The next OPEC+ ministerial conference has been called for May 28, 2025, when new announcements will be made.

M.Pino

Source: elperiodicodelaenergia

(Reference image source: Christian Harb on Unsplash)

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