OPEC+ member countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, held a virtual meeting to reaffirm their commitment to voluntary production cuts. The group, which had previously announced additional cuts in April and November 2023, stressed the importance of adhering to the agreed production levels.
Iraq and Kazakhstan, two countries that have exceeded their production targets since January 2024, also attended the meeting. Both nations reiterated their dedication to the agreement and pledged to adhere to compensation schedules submitted to the OPEC Secretariat, as outlined during the 53rd Joint Ministerial Monitoring Committee (JMMC) meeting in April 2024.
In August 2024, Saudi Arabia, Russia, the UAE, Kuwait, Algeria, and Oman held ministerial discussions with Iraq and Kazakhstan. These discussions focused on urging the two overproducing countries to reach full compliance and compensate for the extra volumes produced since January. Iraq and Kazakhstan agreed to work closely with secondary sources to develop detailed plans for adjusting their production levels. These plans were submitted to the OPEC Secretariat on August 22, 2024.
Later in August, during visits from the OPEC Secretary General, Iraq and Kazakhstan once again reinforced their commitment to the agreement. The visits, coordinated with Saudi Arabia’s Energy Minister and the OPEC leadership, included workshops where both countries outlined immediate measures to ensure compliance. These steps included advancing field maintenance plans, reducing output, and canceling spot sales for August. Both nations also promised to adjust their compensation schedules to cover any excess production.
In light of this renewed commitment, the eight participating OPEC+ countries agreed to extend their voluntary production cuts of 2.2 million barrels per day until the end of November 2024. After this, the cuts will gradually be phased out on a monthly basis starting in December, with the flexibility to pause or reverse adjustments if needed. Iraq and Kazakhstan also confirmed that any excess production would be fully compensated by September 2025.
The extended cuts and compensation efforts underscore OPEC+’s focus on maintaining market stability and ensuring all members adhere to their production agreements.