Eight OPEC+ countries on Sunday have agreed to maintain a planned pause in their oil output hikes for March.
The eight countries—Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—reaffirmed their commitment to oil market stability, based on a stable global economic outlook and healthy market fundamentals reflected in declining inventory levels.
The OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, took this decision during their virtual meeting held on Sunday, to review global market conditions and outlook.
In a statement on the OPEC+ website, the countries reaffirmed their decision of November 2, to suspend production increases in March 2026 for seasonal reasons.
The OPEC+ countries reiterated that the 1.65 million barrels per day (bpd) reduction may be returned in part or in full subject to evolving market conditions and in a gradual manner. The countries will continue to closely monitor and assess market conditions.
In their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to continue pausing or reverse the additional voluntary production adjustments, including the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023.
The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC).
They also confirmed their intention to fully compensate for any overproduced volume since January 2024.
The OPEC+ countries will hold monthly meetings to review market conditions, compliance, and compensation mechanisms, with the next meeting scheduled for next March 1.
Crude prices hit six-month highs on concern the US could launch a military strike on OPEC member Iran.
Oil prices have also been supported by supply losses in Kazakhstan, where the oil sector has suffered a series of disruptions in recent months.
OPEC+ includes the Organization of the Petroleum Exporting Countries, plus Russia and other allies. The full OPEC+ pumps about half of the world's oil.
