OPEC+ reschedules oil output rise to April following multiple postponements

OPEC+ has postponed the planned oil production ramp-up until April, with the alliance's production in January set to decrease by 21,000 barrels per day (bpd), bringing the total to 35.43 million bpd.

Under its latest agreement, OPEC+ members are adhering to production quotas, voluntary cuts, and compensation for underachieved targets, Caliber.Az reports via Russian media.

As part of this arrangement, eight OPEC+ countries will voluntarily reduce their output in two phases, starting in 2023.

The most significant change to the production schedule came in early September when OPEC+ delayed the gradual increase in output, which had initially been set to phase out 2.2 million bpd starting on October 1. The ramp-up was intended to begin at a rate of 180,000 to 200,000 bpd per month, but these plans have been continuously postponed. Now, the alliance aims to begin its production increase in April 2024.

For countries that exceeded their production quotas in 2024, such as Iraq, Kazakhstan, and Russia, specific compensation schedules are in place to balance underproduction volumes.

In January, Iraq will further reduce its production by 10,000 bpd, compared to the December reduction of 110,000 bpd. Kazakhstan is required to increase its compensation by 11,000 bpd after a 54,000 bpd reduction in December. Russia’s oil production quota for January will remain unchanged at 8.978 million bpd.

OPEC, a collective of oil-exporting nations, was established in 1960 to regulate oil production and prices. As of October 2023, OPEC consists of 12 countries, including major oil producers like Saudi Arabia, Iraq, and Venezuela. OPEC+ expanded in 2016 to include additional oil-producing nations, addressing market concerns and fluctuating global oil prices. By January 2024, the OPEC+ alliance includes 11 countries, with Brazil joining the group on January 1, 2024.

By Tamilla Hasanova