Opec+ agree to establish mechanism setting production baselines
Opec+ has been discussing new baseline production levels for years. These baselines are used by each member to determine any adjustments in output, either increases or cuts.
In a statement following the meeting, the alliance said that the Opec Secretariat has been tasked with developing a mechanism to evaluate the maximum sustainable production capacity for participating countries. This assessment will be used as the basis for determining 2027 production levels for all nations party to the Declaration of Cooperation, signed on 10 December 2016, which has consistently been reaffirmed as the methodology for regulating output and enhancing market stability.
The meeting also decided to maintain the total crude oil production level for both Opec members and non-Opec producers participating in the Declaration of Cooperation until 31 December 2026.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
a day ago
- Observer
Vision in action: Building Oman's future
QASIM AL MAASHANI MUSCAT, AUG 10 In a nation defined by transformation, few individuals have done more to shape Oman's private sector and national identity than Dr Siham Al Harthy. Entrepreneur, reformer, and board member of the Oman Chamber of Commerce and Industry (OCCI), Dr Al Harthy has carved out a path of leadership rooted in integrity, resilience, and purpose. As Chair of OCCI's Tourism Committee and CEO of Siham Development & Investment, she is not only steering economic initiatives but reimagining what development looks like—infused with cultural relevance and long-term impact. Her journey, as she tells it, began not with power, but with a problem. 'Early in my career at the Ministry of Housing, everything was still on paper,' she recalls. 'There was no digital archive of land records. Retrieving data could take weeks.' Rather than accept a flawed system, Dr Al Harthy led a nationwide digitisation effort, mobilising experts, forming cross-governorate taskforces, and persuading wary officials to embrace digital solutions. 'That experience taught me that real leadership means solving the problems others avoid—and doing so with purpose.' It was a pivotal moment. Rather than stay within the system, she chose to build new ones. Founding her own firm, Siham Development & Investment, she sought to deliver projects that went beyond profitability, marrying economic viability with national values. 'I saw a gap in developments that balance returns with cultural identity—so I created a company to close it.' Her portfolio spans smart infrastructure, tourism assets, and real estate. But beyond the balance sheets, her work is driven by a deeper mission: ensuring Omani development tells an Omani story. CHALLENGING THE NORMS Being one of the first two women elected to the OCCI Board did not come without resistance. Dr Al Harthy faced persistent questions about her ability to lead, manage partnerships, or represent Oman on the international stage. 'I focused on delivering results,' she says. 'I even founded the first women's association in Al Qabil back in the 1990s—not because it was popular, but because it was necessary.' Her success, over time, has spoken for itself. She believes it is time for women in leadership to become the norm—not the exception. 'Girls need to grow up seeing women lead forums and shape strategy. That's when ambition becomes natural, not radical.' PRIVATE SECTOR AS ENGINE OF VISION 2040 At the core of Dr Al Harthy's work is a firm belief in the role of the private sector in advancing Oman Vision 2040. 'It's not a government vision—it's a national one. And the private sector is its engine.' Through her role in OCCI, she has helped local firms access global markets—such as through digital marketing agreements with UK-based platforms. These steps, while modest in scale, have significant systemic impact. 'We're aligning entrepreneurship with policy and investment. The goal is not just to grow companies—but to grow capacity.' When it comes to tourism, Dr Al Harthy sees storytelling—not sales—as Oman's most strategic asset. 'Oman isn't a product to sell; it's a story to tell. But stories need infrastructure.' She points to Dhofar's monsoon season, which draws thousands of visitors but leaves few long-term economic benefits. That's changing. Her team is now working on tourism projects that blend eco-tourism, youth training, and community inclusion—transforming seasonal booms into sustainable cycles. 'Investors today want value with values,' she explains. 'Green resorts, heritage trails, integrated tourism zones—those are what we're seeing more of. Oman's authenticity is our edge.' INVESTING IN THE NEXT GENERATION Dr Al Harthy's message to young Omanis is clear: start now. 'Don't wait for permission. Don't wait for perfection. I began many of my initiatives with little more than clarity of purpose and the courage to try.' She encourages aspiring entrepreneurs to start small, solve real problems, and stay grounded in their values. 'That's where resilience comes from.'When asked about the principles guiding her leadership, Dr Al Harthy answers without hesitation: 'Integrity. I've slowed down major projects to protect long-term national interests. But I sleep peacefully knowing my decisions are value-driven—not ego-driven.' Inclusive leadership is also central to her philosophy: listening deeply, mentoring youth, and building coalitions. 'I believe in leaving space for others to rise.' As for her legacy? 'I don't want to be remembered just as a builder of projects—but as a builder of people and institutions. Someone who showed that women can lead boldly—without losing their values.' She's currently working on a green hospitality model that blends youth training, local capital, and cutting-edge construction tools such as 3D printing—a scalable initiative aimed at redefining sustainable tourism in the region. 'It's not just about building a hotel—it's about building a model others can replicate.' CLOSING THOUGHTS Dr Siham Al Harthy is not merely participating in Oman's development—she is shaping it. With every initiative, every boardroom discussion, every community project, she brings purpose to the forefront of progress. Her story is a blueprint for a new kind of leadership—one rooted in national pride, global fluency, and unshakable integrity. In a time when vision alone is not enough, Oman has in Dr Al Harthy a builder who leads with both clarity and conviction. And through her, a new generation sees that Oman's future is not only possible—it's already under construction.
Observer
4 days ago
- Observer
Latest OPEC+ production adjustment ‘sound and timely': Energy expert
MUSCAT: The recent decision by eight OPEC+ countries—including the Sultanate of Oman—to implement a 547,000 barrels per day (bpd) production adjustment has been described as 'sound' and 'timely' by a prominent Omani energy expert. Ali al Riyami, a former senior official at the Ministry of Energy and Minerals, praised the decision, noting it comes at a time of low global oil inventories, stable market conditions, and robust demand. Earlier this week, OPEC announced that the eight OPEC+ countries—which had previously declared voluntary output cuts in April and November 2023—had reconvened virtually to reaffirm their commitment to market stability. They based this decision on what the group described as 'healthy oil market fundamentals' and a 'steady global economic outlook.' Alongside Oman, the other countries participating in the latest output adjustment are Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, and Algeria. 'In view of a steady global economic outlook and current healthy market fundamentals—as reflected in low oil inventories—and in line with the decision made on December 5, 2024, to gradually and flexibly phase out the 2.2 million bpd in voluntary cuts from April 1, 2025, the eight participating countries will implement a production adjustment of 547,000 bpd in September 2025, relative to the required August 2025 levels,' OPEC stated. 'This adjustment will occur in four monthly increments. The phase-out may be paused or reversed, depending on evolving market conditions. This flexibility allows the group to continue supporting oil market stability,' the organization added. For Oman, the required production level has been set at 801,000 bpd for September 2025. OPEC also confirmed that the eight countries have pledged to fully compensate for any excess production since January 2024. The group will reconvene on September 7, 2025. Commenting further on the adjustment, al Riyami told Al Arabiya Business: 'The timing was very appropriate, especially with the summer travel and tourism season underway. The market conditions—particularly the low inventories—also supported the decision. Accelerating the process of gradually restoring these volumes over about a year was a very sound move.' However, al Riyami cautioned that ongoing trade tensions, especially new US tariffs and sanctions on Russia and Iran, could cloud the outlook. While the market remains stable with strong demand and overall positive sentiment, uncertainty persists over whether India and China will continue purchasing oil from the sanctioned countries, he noted. Although not a formal OPEC member, Oman has long aligned itself with the organization's strategy through its active role in the OPEC+ alliance. The Sultanate has consistently supported output cut agreements aimed at stabilizing oil markets during periods of volatility, including during the COVID-19 pandemic and amid recent geopolitical disruptions.
Observer
4 days ago
- Observer
Low global diesel supplies support crude prices despite OPEC+ boost
NEW YORK: Low diesel stockpiles worldwide are countering the downward pressure on crude oil prices from rising OPEC+ supply and setting the stage for a third consecutive year of above-normal refining profits. Diesel, the top component of global fuel demand, has been the lone bright spot in an otherwise lackluster oil market this year as refinery closures and a shortage of crude with higher diesel yields have kept inventories below historical norms, analysts said. Meanwhile, demand for the industrial and transportation fuel has been unexpectedly strong because of resilient manufacturing activity and cooling demand due to heatwaves in parts of the world. Tight stocks of diesel have also helped support global oil prices, allowing the Organization of the Petroleum Exporting Countries and its allies to unwind their largest tranche of output cuts months ahead of target, and could justify further supply hikes under discussion. Global benchmark Brent crude futures have rebounded 15% to around $68 a barrel from this year's lows, hit in May when OPEC+ first began unwinding supply cuts. "Tight diesel inventories are providing a very strong floor to oil markets in the mid-$60 per barrel range in the short term," Natasha Kaneva, head of global commodities strategy for J.P. Morgan, told Reuters. US distillate fuel inventories stood at 113 million barrels by August 1, 12% below the five-year average, according to government data. At Europe's Amsterdam, Rotterdam, Antwerp trading hub, independently-held diesel stockpiles slipped under 13 million barrels for the first time since December 2023. The tight market has been something of a surprise after analysts and fuel producers earlier this year anticipated that the opening of new refineries around the world would cause a supply glut. In the latest quarters, however, top global refiners have reported stronger-than-expected profits due to resilient margins. "If I were a trader, I would be very comfortable going long diesel in the months ahead," said Tom Kloza, an analyst for consultancy firm Turner, Mason & Co. Tight stockpiles have pushed diesel refining margins higher in recent months. In the US, ultra-low sulfur diesel (ULSD) futures briefly traded at a $40 premium over US crude futures.— Reuters
