OPEC+ extend production quotas for all of 2026, voluntary adjustments until end of Q1 2025; compensation schedule not ready

MOSCOW. Dec 5 (Interfax) - OPEC+ ministers at a meeting on Thursday approved an extension of the oil production quotas valid in 2025 for all of 2026, OPEC said in a press release.

Additionally, the increase by 300,000 barrels of oil per day in the United Arab Emirates' quota has been changed to April 2025 to September 2026 from the originally planned period of January to September 2025.

In addition, the Great Eight "volunteer" countries Algeria, Iraq, Saudi Arabia, Kuwait, UAE, Kazakhstan, Russia and Oman will extend the additional voluntary adjustments of 1.65 million barrels per day until the end of December 2026. They will extend their additional voluntary adjustments of 2.2 million barrels per day, until the end of March 2025 and then gradually phase them out on a monthly basis until the end of September 2026.

The Great Eight's OPEC+ countries will resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since January 2024 before the end of December 2024. The compensation period itself will be extended until the end of June 2026, while it was earlier assumed over-production would be compensated by October 2025.

The next meeting of the OPEC+ Joint Ministerial Monitoring Committee (JMMC) is scheduled for February 3, the Russian government press service reported. The next OPEC+ Ministerial Meeting is scheduled for May 28.

The OPEC+ ministers extended period for production by their countries to be assessed by three independent sources until the beginning of November 2026, for use as guidance for 2027 reference production levels.

OPEC separately mentioned Saudi Arabia's leadership role. "The countries participating in the Declaration of Cooperation (DoC) express their deepest gratitude to the Kingdom of Saudi Arabia for its exceptional leadership and unwavering commitment to global oil market stability. Under the chairmanship of HRH Prince Abdulaziz bin Salman Al Saud, the DoC countries have navigated challenges with strategic vision, fostering cohesion through consensus building efforts and ensuring balance and transparency in the oil market," OPEC said.

It also recalled that the 2.2 million bpd increase can be paused or reversed subject to market conditions.