OPEC+ extends oil cuts till 2025-end

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OPEC+ agreed today, June 2, to extend their oil output cuts from Jan. 1, 2025, to Dec. 31, 2025.

 
As per the statement of the 37th OPEC and non-OPEC ministerial meeting (ONOMM), member countries decided to reaffirm the framework of the Declaration of Cooperation, signed on Dec. 10, 2016, and further endorsed it in subsequent meetings, together with the Charter of Cooperation, inked on July 2, 2019.

The meeting also saw the approval on the level of overall crude oil production for the DoC’s participating nations, as per the attached table, starting Jan. 1, 2025, until Dec. 31, 2025.

Moreover member nations 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 crude output levels.

They also reiterated 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 typically convened bimonthly.

This is besides nodding to holding the ONOMM OPEC every six months, in accordance with the ordinary OPEC scheduled conference.

Furthermore, participating members authorized the JMMC to hold additional meetings, or to request an ONOMM, at any time to address market developments, whenever deemed necessary.

They, in addition, reaffirmed that the DoC conformity is to be monitored considering crude oil production, using the average of the approved seven secondary sources, and according to the methodology applied for OPEC member countries.

This is alongside reiterating the critical importance of adhering to full conformity and compensation mechanisms.

Further, members scheduled the 38th ONOMM to be held on the coming Dec. 1.

The alliance also agreed on a new output target for the UAE of 3.5 million barrels per day (bpd) by 2025, up 300,000 bpd. The increase shall be phased in from January 2025 to the end of September 2025.

Moreover, OPEC+ will pump 39.73 million bpd in 2025, as indicated in the following table: