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UAE to fully comply with Opec+ decision on extra voluntary oil production
Opec+ has decided to proceed with a planned April oil output increase, the group said on Monday
- PUBLISHED: Tue 4 Mar 2025, 7:37 AM
- By:
- WAM
The UAE has reaffirmed its commitment to oil market stability and to complying with the additional voluntary adjustments aimed at balancing supply and demand.
Opec+ has decided to proceed with a planned April oil output increase, the group said on Monday, a move that follows US President Donald Trump's renewing pressure on Opec and Saudi Arabia to bring down prices.
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Eight Opec+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on Monday, to review global market conditions and the future outlook, according to an Opec statement.
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They have agreed on a plan to implement the gradual increase in the UAE’s production, as decided in the previous ministerial meeting, by 300,000 barrels per day, starting from April 2025 until the end of September 2026. This gradual increase will bring the UAE’s total production to 3.375 million barrels per day.
The eight countries reiterated their collective commitment to full conformity with the additional voluntary production adjustments as agreed under a previous meeting on April 3, 2024.
Accordingly, this gradual increase may be paused or reversed subject to market conditions. This flexibility will allow the group to continue to support oil market stability.
They also confirmed their intention to fully compensate for any overproduced volumes since January 2024, in accordance with the compensation plans submitted to the Opec Secretariat, ensuring that all compensations are completed by June 2026.
Taking into account the healthy market fundamentals and the positive market outlook, they re-affirmed their decision agreed upon on December 5, 2024, to proceed with a gradual and flexible return of the 2.2 mbd voluntary adjustments starting on April 1, while remaining adaptable to evolving conditions.
Countries with excess production agreed to submit their compensation plans in advance, ensuring that more excess volumes are offset in the early months of the compensation period. They will submit their updated compensation schedules to the Opec Secretariat by March 17.
(With inputs from Reuters)