Oil-producing nations within OPEC+ have decided to boost oil output
In a virtual meeting held on September 7, 2023, OPEC+ nations, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, gathered to discuss the state and outlook of the global oil market. The meeting was reported by Liter.kz, citing the organization's press service.
The current OPEC+ production adjustment is a continuation of the voluntary adjustments previously announced in April and November 2023. The adjustment in production was made due to the stable global economic outlook and favorable market conditions, reflected in low oil inventories.
However, the participating countries have decided to adjust production by 137,000 barrels per day from the previously announced 1,65 million barrels per day in April 2023. This means that the 1,65 million barrels per day can be partially or fully restored depending on changing market conditions.
The OPEC+ nations have emphasized their ongoing efforts to maintain market stability. The current OPEC+ production adjustment does not include a restoration of the 1,65 million barrels per day that was previously announced for October 2025. The adjustment will be implemented in October 2025.
The OPEC+ countries have noted that the current measure will help participating countries accelerate compensation payments. They have also confirmed the importance of maintaining full flexibility to pause or cancel additional voluntary adjustments. The previously implemented voluntary adjustments of 2,2 million barrels per day announced in November 2023 are still in effect, but their future is subject to change based on market conditions.
The Brent oil price has not plunged below $70 due to the current OPEC+ production adjustment, although this fact is inferred from the context rather than being explicitly stated. No statement has been made by the Ministry of Energy regarding the current situation.
Analysts assume the real reason for the reduced production adjustment is a global oversupply and a strategic move to regain market share by accepting lower prices. Despite this, the OPEC+ countries have not made a decision to increase the oil production ceiling at this time.
The OPEC+ nations have emphasized their commitment to maintaining market stability and will continue to monitor global oil market conditions closely.
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