Eight OPEC+ countries will continue to voluntarily reduce oil production in the amount of 2.2 million barrels per day (b/d) during the first quarter of 2025 to balance the oil market.
As Day.Az reports with reference to TASS, only eight OPEC+ countries adhere to oil production restrictions of 2.2 million bpd from the beginning of 2024: Russia, Saudi Arabia, Algeria, Iraq, Kazakhstan, Kuwait, the UAE and Oman.
From October 2024, these countries planned to begin to gradually lift restrictions and restore production; a corresponding schedule was drawn up. However, the production ramp-up was first delayed until December, then until the end of 2024, and at the last OPEC+ ministerial meeting – until the end of the first quarter of 2025. Russian Deputy Prime Minister Alexander Novak said that OPEC+’s actions are aimed at not destabilizing the oil market during the period of low winter demand.
According to the new schedule for restoring oil production, published on the OPEC website, production growth is planned for the period from April 2025 to the end of September 2026. But changes in this schedule are allowed depending on the situation on the oil market. In addition, by the end of 2026, the same eight OPEC+ countries will voluntarily reduce production by another 1.65 million bpd.
As for oil production quotas directly under the OPEC+ deal, changes in 2025 will affect only one country – the UAE. Initially, this country was supposed to begin to gradually increase production according to its quota by 300 thousand bpd from January 2025. According to the new plan, the UAE will begin to increase production from April 2025 and complete this process by the end of September 2026.
Obligations of “debtors”
Russia, Iraq and Kazakhstan did not fully comply with their obligations to voluntarily reduce oil production in 2024, so these countries pledged to compensate for overproduction. This process began back in August and was expected to last until the end of September 2025.
At the last OPEC+ meeting, these three countries extended the compensation period until the end of June 2026. And by the end of 2024, they had to submit updated schedules for compensation for overproduction to the OPEC secretariat. These charts have not yet been published.
According to the previous schedule, Russia had to compensate for excess oil production in the amount of 480 thousand b/d, Kazakhstan – 699 thousand b/d, and Iraq – 1.44 million b/d.