The Organisation of Petroleum Exporting Countries (OPEC) and its allies have decided to extend their voluntary oil production cuts until the end of 2026. This decision was made during the 38th OPEC and non-OPEC Ministerial Meeting held virtually on Thursday.
In a statement, OPEC confirmed that key member countries including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman agreed to maintain earlier voluntary production adjustments. These cuts, totalling 1.65 million barrels per day, were first announced in April 2023.
The group will extend another adjustment of 2.2 million barrels per day, announced in November 2023, until March 2025. After that, the reductions will be gradually phased out by September 2026. The goal is to stabilise global oil markets and ensure a balanced supply.
Nigeria’s Commitment
Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, highlighted the country’s continued support for OPEC’s efforts. “This decision shows the unity of OPEC and its partners in ensuring a stable oil market,” he said. Lokpobiri also noted that these measures align with Nigeria’s production goals and its plan to achieve a target of 2.06 million barrels per day by 2025, as outlined in the draft budget.
The minister reaffirmed Nigeria’s dedication to global energy security and sustainable resource management, stating that the government would continue to work closely with OPEC and other partners to achieve these goals.