OPEC+ reaffirms commitment to stability, adjust production upward
VIENNA: Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman reaffirmed their commitment on Saturday to market stability on current healthy oil market fundamentals and adjust production upward.
In a joint statement, the eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 3 May 2025, to review global market conditions and outlook.
The statement noted, "in view of the current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day in June 2025 from May 2025 required production level." This is equivalent to three monthly increments as detailed in the table below.
The gradual increases may be paused or reversed subject to evolving market conditions.
This flexibility will allow the group to continue to support oil market stability.
The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation.
The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that were agreed to be monitored by the JMMC during its 53rd meeting held on April 3rd 2024.
They also confirmed their intention to fully compensate for any overproduced volume since January 2024.
The eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation.
The eight countries will meet on 1 June 2025 to decide on July production levels.
All KUNA right are reserved © 2022. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
14 hours ago
- Zawya
Oil leaps 4% after OPEC+ keeps output increase unchanged
Oil prices jumped by about 4% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $2.49, or 3.97%, to $65.27 a barrel by 1220 GMT. U.S. West Texas Intermediate crude was up $2.70, or 4.44%, at $63.49. Both contracts lost more than 1% last week. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Oil traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures. "Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed," Onyx Capital Group analyst Harry Tchilinguirian wrote on LinkedIn. Kazakhstan has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy minister. Oil prices would need to fall to $58 a barrel or lower to make it unprofitable for Kazakhstan to overproduce its quota, said Bjarne Schieldrop, SEB's chief commodities analyst. Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. "Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a note. Morgan Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October. "With this latest announcement, there is little sign that the pace of quota increases is slowing," the bank's analysts said. Prices were also supported by the increased geopolitical risk premium after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy's Jorge Leon. (Reporting by Robert Harvey in London and Florence Tan and Michele Pek in Singapore Editing by David Goodman)
Zawya
14 hours ago
- Zawya
Oil leaps more than 3% after OPEC+ keeps output increase unchanged
LONDON - Oil prices jumped by about 3% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $2.28, or 3.63%, to $65.06 a barrel by 1118 GMT. U.S. West Texas Intermediate crude was up $2.45, or 4.03%, at $63.24. Both contracts lost more than 1% last week. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Oil traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures. "Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed," Onyx Capital Group analyst Harry Tchilinguirian wrote on LinkedIn. Kazakhstan has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy minister. "Given the circumstances of a loss in market share and the almost too honest admission from Kazakhstan that it would not cut output, there does seem little choice," PVM analyst John Evans said of the OPEC+ decision. Oil prices would need to fall to $58 a barrel or lower to make it unprofitable for Kazakhstan to overproduce its quota, said Bjarne Schieldrop, SEB's chief commodities analyst. Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. "Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a note. Morgan Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October. "With this latest announcement, there is little sign that the pace of quota increases is slowing," the bank's analysts said.
Zawya
14 hours ago
- Zawya
AEO chief calls for harnessing all energy resources
KUWAIT -- Secretary General of the Arab Energy Organization (AEO) Jamal Al-Loughani said on Sunday that all energy resources must be put at the disposal of meeting the growing demand however, he has re-affirmed that the new sources will not substitute the conventional resources. Electric power consumption will significantly grow by 2050, thus new investments must be launched in all energy resources, Al-Loughani said in a statement to KUNA, marking issuance of AEO's first edition release of the quarterly follow-up report on the new and renewable energy, climatic and energy changes for Q1, 2025. There was noticeable global interest in the renewable energy in the Q1, 2025, however the size of investments varied from region to another, he said. China continued to expand the renewable energy sector as part of plans to enhance the energy security and diversify production sources, while solar energy output in Egypt made record growth, Al-Louihani continued in the interview with Kuwait News Agency. In the United States of America, planned huge investments in the renewable energy were shelved due to uncertainties regarding taxation in the sector. As to the Arab Energy Organization's member states, they pursued efforts to expand the sector with new policies, amid technological progress and international cooperation to harness the abundant resources of solar and wind energies. Total renewable energy capacity worldwide reached some 4,448 megawatts in the end of 2024, he said, expressing his opinion that these capacities should grow by 16.6 percent per year to reach the triple ceiling by 2030, as it had been agreed upon at the climatic conference COP 28, he added. Elaborating, Al-Loughani said transportation is basic for a clean hydrogen system, noting that it can be useful for the densely populated regions. Vehicles with cell batteries will not be competitive unless lower costs for the clean hydrogen has been attained, Al-Loughani pointed out. Presenting further scenarios, Al-Loughani said the artificial intelligence AI would be helpful to attain a qualitative leap in improving efficiency, cutting the energy consumption and emissions from the conventional energy resources. Additionally, he cautioned that the energy future hinges not only on sustainability, but also on the energy security and reasonable costs and prices. The concept of energy varies from one country to another with respect of the priorities and economic conditions, he said, advising that transfer to clean energy must be sought while considering the economic conditions and social justice in each concerned country. Addressing the issue from another perspective, Al-Loughani pointed out that concentration of rare raw materials in certain nations worldwide increases fears of disruption in the supply chains, geopolitical hazards, noting that China controls 80 percent of the rare minerals supply chains and 90 percent of the treatment potentials. Asserting the cautious bullish outlook with respect of electric cars' sales and the impact on the global oil demand, Al-Loughani said the demand would remain stable and might increase in developing countries that have been witnessing noticeable and rapid economic growth, along with population growth. Regarding the nuclear energy, he has stated that it is a strategic option that envisages major chances and complex challenges namely safety and security, such as sound and harmless waste treatment. Currently, there are 440 operating nuclear reactors in 32 states with an output capacity of 400 gigawatts and secure nine percent of the global power output. He called on the Arab states to study the foreign experience that affirms necessity of clear policies, effective investments and structures that match the technological development in nuclear energy. He has also noted in this regard that many states throughout the globe have been reviving or expanding their nuclear programs, motivated by the need for reliable and sustainable energy. Al-Loughani has called for decisive and collective measures to cope with the climatic challenges, considering that the earth heating is forecast to increase to record levels in the coming few years. All KUNA right are reserved © 2022. Provided by SyndiGate Media Inc. (
