What OPEC+ oil production cuts are currently in effect?

OPEC+ will likely make more changes to its oil policy at its meeting on December 5, delaying a planned production increase further into the next year, as it is facing a weaker outlook for oil demand.

In June, the oil producers' group reached a complex agreement to extend production cuts deep into 2025. The agreement has been modified to allow the group to delay a planned production increase by three months to the start of next year.

Here is a short explanation of how the Organization of Petroleum Exporting Countries (OPEC+) and its allies have reduced their emissions.

OPEC+ is currently cutting production by a total amount of 5,86 million barrels a day (bpd), which is about 5.7% global demand.

Three tranches are included:

1. All OPEC+ Members will now be able to produce 2.00 million bpd. This was originally set at the end 2024, but it has been extended by an additional year on June 2, 2025.

2. The voluntary reductions of 1.66 million bpd by nine countries (Algeria Gabon Iraq Kazakhstan Kuwait Oman Russia Saudi Arabia United Arab Emirates) were extended by an additional year on June 2, from the end 2024 to the end 2025.

3. Eight members (Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the United Arab Emirates), who have made voluntary cuts of 2.20 million bpd, extended the deadline for the cuts to June 30th 2024 by three months. Two decisions made in September and December delayed the rollout of these increases until January 2025.

4. The United Arab Emirates were granted a higher production quote under the June agreement. This allowed them to gradually increase their output by 300,000.bpd for a period nine months starting in January 2025.

OPEC+ announced in June that it would phase out its third tranche of reductions of 2.2 millions bpd gradually by the end September 2025.

The group has made changes to its June agreement in October and Novermber. It will reduce production by 5,86 million barrels per day until the end 2024, and then add barrels on the market gradually to reach a reduction of approximately 3.66 million barrels per day by October 2025. (Editing by Dmitry Zhdannikov & David Evans)

(source: Reuters)