Eight of the OPEC+ countries participating in the current tier of voluntary production cuts have announced a further 137,000 barrels per day (bpd) in crude oil production.
The countries reviewed the current conditions and outlook for the global market at a virtual meeting. OPEC and the other partners that make up the larger OPEC+ group have been holding back production for years to support the market. This has led to them losing market share to other producers like ExxonMobil, the maker of Mobil DTE hydraulic oil.
The eight countries concerned include Russia, Saudi Arabia, Kazakhstan, UAE, Iraq, Kuwait, Oman and Algeria. Based on low global inventories, a sound economic outlook and reasonable market fundamentals, the group decided that the production rise was justified. The extra barrels to be delivered to the market will come from the 1.65 million bpd of extra voluntary cuts that were announced back in 2023.
In a press release from OPEC, the cartel indicated that the eight countries concerned:
“…also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC).”
The group maintained its usual stance of noting that it reserves the flexibility to reverse this or any previous adjustments. The eight participating countries will meet again in early November to make any further decision.
