OPEC+ extends oil production cuts to 2026

A group of OPEC+ nations, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, agreed on Thursday to extend their voluntary oil production cuts to the end of 2026.

The decision, made during a virtual meeting on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM), aims to further stabilise the global oil market.

Building on earlier agreements, OPEC+ announced an extension of the voluntary 1.65 million barrels per day (bpd) cuts, introduced in April 2023, through the end of December 2026. Additionally, the 2.2 million bpd reductions declared in November 2023 will remain in effect until March 2025, after which they will be gradually phased out on a monthly basis until September 2026. However, these phased adjustments may be paused or reversed depending on market conditions.

The coalition emphasised its precautionary approach to market stability, underscoring transparency and collaboration. Overproducing countries committed to achieving full compliance by resubmitting updated compensation schedules to the OPEC Secretariat for volumes exceeding quotas since January 2024. The compensation period was extended until June 2026.

This meeting reinforces OPEC+’s strategic role in managing oil supply to balance global demand, ensuring a stable energy market amid economic uncertainties.

Attribution: OPEC statement