OPEC member countries and their allies in the OPEC+ coalition agreed on Thursday to extend oil production cuts for all members until the end of 2026. Additionally, eight countries have decided to maintain a voluntary reduction of 2.2 million barrels per day through the end of the first quarter of 2025, as stated by the Algerian Ministry of Energy, Mines, and Renewable Energy.
These decisions were made during the 57th meeting of the Joint Ministerial Monitoring Committee (JMMC) comprising both OPEC and non-OPEC countries, along with the 38th ministerial gathering of the OPEC+ nations, which was conducted via videoconference. The meeting featured participation from Mohamed Arkab, Algerian State Minister and Minister of Energy, Mines, and Renewable Energy, as well as the CEO of Sonatrach, the president of the National Agency for the Valorization of Hydrocarbon Resources (ALNAFT), and other officials from the ministry.
During these meetings, “the oil ministers discussed the current state of the global oil market and its short- to medium-term outlook.” They reached an agreement to “extend the production cuts for all OPEC+ countries until the end of 2026 and to prolong the compensation period for excess production until mid-2026,” according to the same source.
In a separate coordination meeting, the oil ministers from eight OPEC+ member countries—Algeria, Saudi Arabia, United Arab Emirates, Iraq, Kazakhstan, Kuwait, Russia, and Oman—decided to “extend the voluntary production cut of 2.2 million barrels per day until the end of the first quarter of 2025, in line with the decision made in November 2023.”
Furthermore, the eight ministers agreed during their discussions to implement a gradual increase in production starting in April 2025, extending over an 18-month period until September 2026, while maintaining the previously established decision from April 2023 to enforce a voluntary reduction of 1.6 million barrels per day throughout 2026.
Arkab characterized the decision by the eight OPEC+ countries to extend their voluntary production cuts for an additional three months as “wise and responsible,” aimed at stabilizing the global oil market in the forthcoming months.
Addressing the uncertainties impacting the international oil market, the minister highlighted that “the global economic situation remains unclear and unstable, marked by low growth in many regions, disappointing indicators in emerging markets, and a lack of sustainable recovery in China.”
He further noted that “global oil demand remains relatively weak, while the market is adequately supplied and commercial oil stocks remain elevated.”
Arkab affirmed that OPEC+ ministers “will continue to maintain constant communication and closely monitor developments in the oil market in the coming months.”
