OPEC+ reaffirms commitment to monitor oil production for market stability

The Organisation of Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, have reaffirmed commitments to monitor production adjustment aimed at maintaining stability in the global oil market.

The group gave the reaffirmation during its 58th meeting of the joint ministerial monitoring committee (JMMC), held via video conference on Monday.

According to a resolution issued after the meeting, participants reviewed the overall conformity levels among OPEC and non-OPEC nations involved in the declaration of cooperation (DoC).

“The improved conformity further reaffirms the DoC countries’ shared objectives of unity and cohesion,” OPEC said.

“The meeting lauded the improved conformity of the Republics of Kazakhstan and Iraq, including the additional voluntary production adjustments.”

Additionally, the meeting assessed crude oil production data for November and December 2024, evaluating member countries’ compliance with agreed production quotas.

The committee welcomed renewed pledges from overproducing countries, which committed to achieving full conformity with their assigned production targets.

According to the resolution, it was resolved that all concerned countries must resubmit their updated compensation schedules to the OPEC secretariat by the end of February 2025.

Furthermore, the resubmitted schedules must account for overproduced volumes since January 2024.

The committee underscored the importance of full conformity and compensation.

Consequently, the JMCC reaffirmed its commitment to closely monitoring production adjustments that were agreed upon on December 5, 2024, at the 38th OPEC and non-OPEC ministerial meeting (ONOMM).

‘JMCC REPLACES SECONDARY SOURCES’

OPEC said after conducting a thorough evaluation, effective from February 1, 2025, the committee replaced Rystad Energy and the Energy Information Administration (EIA) with Kpler, OilX, and ESAI as secondary sources.

In the resolution, the replacement was described as a necessary step to enhance the assessment of crude oil production and ensure improved conformity among DoC participating countries.

The next meeting, which will be the 59th session of the JMMC, is scheduled to take place on April 5.

On December 5, OPEC granted Nigeria an extension of its 1.5 million barrels per day (bpd) oil production quota until 2026.

Furthermore, on December 11, OPEC confirmed that Nigeria maintained its position as Africa’s largest oil producer.