Ministerial Meeting
OPEC, allies extend voluntary production cut of crude oil till March-end
This story was originally published at 20:30 IST on 5 December 2024
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MUMBAI – Eight member nations of the Organization of the Petroleum Exporting Countries and its allies have further extended their voluntary production cuts of crude oil till the end of March, according to an official statement by the cartel. The 38th OPEC and non-OPEC ministerial meeting was held on Thursday through videoconference.
The eight members of OPEC and its allies--Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman--had previously extended the voluntary production cuts, amounting to 2.2 million barrels per day, till the end of December.
The overproducing countries pledged full conformity and to resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since January 2024 before the end of December as agreed in the 52nd Meeting of the Joint Ministerial Monitoring Committee held on Feb. 1. The compensation period will be extended until the end of June 2026, the release said.
"The meeting was conducted to reinforce the precautionary efforts of OPEC and allies countries, aiming to support the stability and balance of oil markets," the release said. They also decided to extend the additional voluntary adjustments of 1.65 million barrels per day which were announced in April 2023, until the end of December 2026, to support market stability. The monthly output increase can be paused or reversed subject to market conditions, it said.
The quota for the United Arab Emirates has been increased by 300,000 barrels per day. The output will gradually increase from April 2025 until the end of September 2026.
The OPEC and non-OPEC Joint Ministerial Monitoring Committee will now hold the next meeting on May 28, 2025. At 1910 IST, the price of West Texas Intermediate crude oil was $68.71 per barrel, up 0.3%, and that of Brent oil on the Intercontinental Exchange was up 0.1% at $72.39 per barrel. End
US$1 = INR 84.73
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Sandeep Sinha
Edited by Akul Nishant Akhoury
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