OPEC+ Adopts Plan for 2027 Baselines
OPEC+ agreed on Wednesday to establish a mechanism for setting baselines for its 2027 oil production.
The 39th OPEC and non-OPEC Ministerial Meeting was convened in light of the continued commitment of the participating countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market.
The participants reaffirmed the Framework of the DoC, signed on December 10, 2016, and further endorsed in subsequent meetings.
They reaffirmed the level of overall crude oil production for OPEC and non-OPEC participating countries in the DoC as agreed in the 38th OPEC and non-OPEC Ministerial Meeting until December 31, 2026.
They reaffirmed the mandate of the Joint Ministerial Monitoring Committee (JMMC) to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC, assisted by the OPEC Secretariat. The JMMC meeting will be held every two months.
The participants underlined the JMMC's authority to hold additional meetings, or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary.
They also reiterated the critical importance of adhering to full conformity and the compensation mechanism.
Furthermore, they mandated the OPEC Secretariat to develop a mechanism to assess participating countries' maximum sustainable production capacity (MSC) to be used as reference for 2027 production levels for all DoC countries.
The 40th OPEC and non-OPEC Ministerial Meeting will be held on November 30.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Arabiya
an hour ago
- Al Arabiya
Iran demands ‘guarantee' US will lift sanctions in nuclear talks
Tehran called on Washington to provide a formal guarantee that it will lift sanctions imposed on Iran in ongoing talks on the Islamic Republic's nuclear program. 'We want to guarantee that the sanctions are effectively lifted,' foreign ministry spokesman Esmaeil Baqaei told a news conference in Tehran. 'So far, the American side has not wanted to clarify this issue.' Developing
Arab News
an hour ago
- Arab News
Oil Updates — crude jumps after OPEC+ sticks to same output hike in July versus June
SINGAPORE: Oil prices rebounded more than $1 a barrel on Monday after producer group OPEC+ decided to increase output in July by the same amount as it did in each of the prior two months, which came as a relief to those who expected a bigger increase. Brent crude futures climbed $1.46, or 2.33 percent, to $64.24 a barrel by 9:26 a.m. Saudi time after settling 0.9 percent lower on Friday. US West Texas Intermediate crude was at $62.45 a barrel, up $1.66, or 2.73 percent, following a 0.3 percent decline in the previous session. Both contracts were down more than 1 percent last week. The Organization of the Petroleum Exporting Countries and their allies decided on Saturday to raise output by 411,000 barrels per day in July, the third month the group known as OPEC+ increased by the same amount, as it looks to wrestle back market share and punish over-producers. The group had been expected to discuss a bigger production hike. 'Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed,' analyst Harry Tchilinguirian of Onyx Capital Group wrote on LinkedIn. Oil traders said the 411,000-bpd output hike had already been priced into Brent and WTI futures. 'The headline motive has centered on punishing OPEC+ members like Iraq and Kazakhstan that have persistently produced above their pledged quotas,' said the Commonwealth Bank of Australia in a note on Monday. Kazakhstan has informed OPEC that it does not intend to reduce its oil production, according to a Thursday report by Russia's Interfax news agency citing Kazakhstan's deputy energy minister. Looking ahead, Goldman Sachs analysts anticipate OPEC+ will 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 6th,' the bank said in a note dated Sunday. Meanwhile, low levels of US fuel inventories have stoked supply jitters ahead of expectations for an above-average hurricane season, analysts said. 'More encouraging was a huge spike in gasoline implied demand going into what's considered the start of the US driving season,' ANZ analysts said in a note, adding that the gain of nearly 1 million bpd was the third-highest weekly increase in the last three years. Traders are also closely watching the impact of lower prices on US crude production which hit an all-time high of 13.49 million bpd in March. Last week, the number of operating oil rigs in the US fell for a fifth week, down four to 461, the lowest since November 2021, Baker Hughes said in its weekly report on Friday.
Asharq Al-Awsat
an hour ago
- Asharq Al-Awsat
Saudi Arabia Opens Direct Communication Channel with Businesses to Overcome Investment Hurdles
Asharq Al-Awsat learned that Saudi Arabia's Ministry of Investment is launching a new service to strengthen its relationship with national businesses by providing them with direct access to a suite of investment-related services. The initiative will assign each company a dedicated relationship manager, who will serve as the main point of contact to streamline access to government programs and services. These include the Strategic Investor initiative, the enhanced services program 'Meyza,' the Alignment Platform, and various services offered by government entities at the Business Center. The move is part of the Kingdom's broader effort to create a more dynamic and investor-friendly environment as outlined in the National Investment Strategy, launched in 2021 by Prince Mohammed bin Salman, Crown Prince and Prime Minister. The strategy targets more than SAR 12 trillion ($3.2 trillion) in investments into the local economy by 2030. This includes SAR 5 trillion through the Shareek program, SAR 3 trillion in local investments by the Public Investment Fund, and SAR 4 trillion in contributions from domestic and international companies operating under the strategy's framework. The ministry has notified private sector companies that the new service will also serve as a platform to receive feedback, suggestions, and observations regarding regulations, business procedures, and related challenges. Additionally, businesses will receive invitations to take part in relevant events organized by the Ministry. The initiative reflects the Ministry's responsibility to manage Saudi Arabia's investment environment, provide facilitation and support for investors, and elevate the competitiveness of the Kingdom's economy. Efforts focus on expanding operational scope, boosting competitiveness, and removing barriers that hinder business performance. In the first quarter of 2025, the ministry reported significant progress, including the issuance of 44 regional headquarters licenses, resolution of 38 investor-related challenges, and the processing of over 1,000 investor visa services. More than 55,000 digital services were also delivered through the Ministry's website. In parallel with these operational upgrades, the ministry is actively pursuing legislative and regulatory reforms to foster a secure and competitive investment climate. One major development has been the establishment of the Saudi Investment Promotion Authority, which coordinates public and private efforts to position the Kingdom as a leading global investment destination. Recent legal reforms include the implementation of new executive regulations for the commercial registry system. Under these changes, businesses now operate under a single commercial license for all their activities across the Kingdom, eliminating the need for sub-licenses and reducing financial burdens. Additionally, new regulations for commercial names aim to streamline the name reservation and registration process, enhance their value, and ensure proper legal protection. The Ministry of Commerce has also introduced a mechanism to allow existing businesses to regularize their trade names in line with the updated regulations.
