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Informist, Monday, Nov. 3, 2025

 

MUMBAI – While eight member countries of the Organization of the Petroleum Exporting Countries and its allies agreed to hike output in December by a small amount, they also agreed to pause production hikes for Jan-Mar. The organisation will implement a production increase of 137,000 barrels per day of crude oil in December from the 1.65 million barrels per day of additional voluntary adjustments announced in April 2023.

 

In view of a steady global economic outlook and current healthy market fundamentals as reflected in the low oil inventories, the organisation has decided to further increase production, it said in a release on Sunday. However, beyond December, the organisation has decided to pause production in the first three months of 2026 due to seasonality, the release said. The eight countries reiterated that the 1.65 million barrels per day may be returned in part or in full, subject to evolving market conditions and in a gradual manner, it said. 

 

Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman had been participating in voluntary production cuts, initially started in November 2023, which were scheduled to be phased out by the end of 2026. But the voluntary production cuts ended ahead of the schedule. The eight countries began raising output in April with a hike of 138,000 barrels per day, followed by larger-than-planned hikes of 411,000 barrels per day in May, June and July, 548,000 barrels per day in August, 547,000 barrels per day in September, and 137,000 barrels per day in October, and the same amount in November.

 

OPEC will begin to unwind a tranche of curbs of 1.65 million barrels per day, which were set to remain in place till the end of 2026. The 1.65 million barrels per day may be returned in part or full, subject to evolving market conditions and in a gradual manner. The countries will continue to closely monitor and assess market conditions and their continuous efforts to support market stability, the organisation said. They reaffirmed the importance of adopting a cautious approach and retaining full flexibility to pause or reverse the additional voluntary production adjustment, including the previously implemented adjustments of the 2.2 million barrels per day announced in November 2023.  

 

The eight countries said the hike will provide an opportunity for the participating countries to accelerate their compensation. These countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that were agreed to be monitored by the joint ministerial monitoring committee. 

 

They also confirmed their intention to fully compensate for any overproduced volume since January 2024, the organisation said. The eight counties will meet again on Nov. 30, it said. 

 

The following table shows the required production by each of the eight member nations in December compared with November at a thousand barrels per day:

 

Country	Required production in Dec (kbd)	Required production in Nov (kbd)
Algeria	971	967
Iraq	4,273	4,255
Kuwait	2,580	2,569
Saudi Arabia	10,103	10,061
UAE	3,411	3,399
Kazakhstan	1,569	1,563
Oman	811	808
Russia	9,574	9,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Reported by Shreya Shetty

Edited by Akul Nishant Akhoury

 

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