The eight participating countries have decided to implement a production adjustment of 137,000 barrels per day in December, compared to the production level required in November, explained the Organization of the Petroleum Exporting Countries (OPEC) in a statement.
This decision follows a videoconference meeting attended by Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Oman, and Algeria.
The increase announced today, the ninth consecutive one, takes into account a stable global economic outlook and the current strong market fundamentals, reflected in low oil stock levels, the organization noted.
Since April, the eight countries have been increasing their production targets monthly, altogether adding about 2.7 million barrels per day to face growing competition, especially from U.S. shale oil producers.
Starting early next year, member states have decided, due to “seasonality,” to suspend production increases for three months, from January to March.
The rise next month will be applied from the 1.65 million barrels per day of additional voluntary adjustments announced in April 2023, which, according to Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Oman, and Algeria, could be fully or partially restored depending on market conditions and in a gradual manner.
Moreover, the eight countries emphasize the importance of adopting a prudent approach and maintaining full flexibility to continue suspending or reversing the additional voluntary production adjustments, including the previously implemented voluntary adjustments of 2.2 million barrels per day announced in November 2023.
Founded in 1960 in Baghdad by Saudi Arabia, Venezuela, Iran, Iraq, and Kuwait, OPEC currently comprises 12 countries.
In 2016, after realizing it could not alone curb the drop in oil prices caused by increasing shale oil production in the U.S., the group decided to cooperate with another 10 countries, including Russia, Mexico, Kazakhstan, and Azerbaijan, thus creating the OPEC+ alliance.
