The Organisation of Petroleum Exporting Countries (OPEC) and its allies on Thursday agreed to extend their current oil output voluntary cuts until the end of 2026.
OPEC disclosed this at its 38th OPEC and non-OPEC ministerial meeting, a statement released by the organisation said.
The oil cartel said its member countries, Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, which previously announced additional voluntary adjustments in April 2023 and November 2023, held a virtual meeting.
It said the meeting was conducted to reinforce the precautionary efforts of OPEC+ countries, aiming to support the stability and balance of oil markets.
It explained that the aforementioned countries decided, in addition to the latest decisions from the meeting, to extend the additional voluntary adjustments of 1.65 million barrels per day that were announced in April 2023, until the end of December 2026.
“Moreover, these countries will extend their additional voluntary adjustments of 2.2 million barrels per day, which were announced in November 2023, until the end of March 2025 and then the 2.2 million barrels per day adjustments will be gradually phased out on a monthly basis until the end of September 2026 to support market stability,” the oil cartel said.
Nigeria
Speaking on the outcomes of the meeting, Nigeria’s Minister for State, Petroleum Resources (Oil), Heineken Lokpobiri, reiterated Nigeria’s commitment to the Declaration of Cooperation (DoC) and emphasised the critical role of collaborative efforts in ensuring a balanced and sustainable oil market.
“This meeting reflects the unity and resolve of OPEC and its partners to maintain stability and ensure a balanced market. Nigeria remains steadfast in supporting these efforts while pursuing our national objectives within the global energy landscape,” Mr Lokpobiri, who is also the Head of the Nigerian OPEC Delegation, said.
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For Nigeria, Mr Lokpobiri in a statement by Nneamaka Okafor, his special adviser on media and communication on Thursday said these resolutions provide a strategic pathway to achieving the nation’s 2025 production target of 2.06 million barrels per day (inclusive of condensates), as outlined in the draft 2025 appropriation bill, positioning the country to leverage its resources effectively while aligning with global market trends.
“The federal government of Nigeria remains dedicated to fostering partnerships within OPEC and beyond, contributing to global energy security while ensuring the sustainable development of its resources,” the statement said.
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