OPEC+ approves plan to gradually increase UAE production

 

OPEC+ approves plan to gradually increase UAE production

The eight member states of the OPEC+ alliance approved the plan to gradually increase UAE production, which was decided at the previous ministerial meeting, by 300,000 barrels per day, starting from April 2025 until the end of September 2026, bringing the UAE’s total production after the gradual increase to 3.375 million barrels per day.

This came during the virtual meeting, on Monday, of the eight member states of OPEC+, which previously announced additional voluntary adjustments in April and November 2023, namely the UAE, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, to review global market conditions and future expectations.

The UAE affirmed its commitment to the stability of the oil market and compliance with the additional voluntary adjustments that would enhance the balance between supply and demand. The eight countries renewed their collective commitment to fully comply with the additional voluntary production adjustments as agreed at the 53rd meeting of the Joint Ministerial Monitoring Committee on April 3, 2024.

The UAE and the countries gathered on Monday also confirmed their intention to fully compensate for any excess production since January 2024, in accordance with the compensation plans submitted to the OPEC Secretariat, with a view to ensuring that all compensations are completed by June 2026, according to the official Emirates News Agency.

Taking into account the healthy market fundamentals and the positive market outlook, they reaffirmed their decision agreed on December 5, 2024, to proceed with the gradual and flexible return of the voluntary adjustments of 2.2 million barrels per day starting from April 1, 2025, while maintaining the ability to adapt to evolving circumstances. Accordingly, this gradual increase may be paused or reversed depending on market conditions, while this flexibility will allow the group to continue supporting oil market stability.

Countries with excess production have agreed to submit their compensation plans in advance, so that more overproduction will be compensated in the first months of the compensation period, and will submit their updated compensation schedules to the OPEC Secretariat by March 17.