• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 6 days By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 1 day Solid State Lithium Battery Bank
  • 13 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 1 hour Bad news for e-cars keeps coming
  • 12 days The United States produced more crude oil than any nation, at any time.

OPEC Resolves Compensation Plans for Overproducing Members

OPEC convened a workshop today to address oil overproduction issues and devise comprehensive compensation plans to make up for previous overages, according to an official OPEC press release.

The push for production cut compliance comes as the price of Brent crude is trading down roughly $6 per barrel over the last 30 days.

The workshop brought together technical experts from Iraq and Kazakhstan, along with industry professionals from secondary sources, and was prompted by the recent mandates outlined in the 35th OPEC and non-OPEC Ministerial Meeting held in June 2023, emphasizing the crucial adherence to production quotas and the principle of compensation. Per the directives of the 53rd Meeting of the Joint Ministerial Monitoring Committee (JMMC) held on April 3, 2024, countries with outstanding overproduced volumes were required to submit detailed compensation plans by April 30, 2024.

Iraq and Kazakhstan were key participants in today's workshop. Iraq reported overproduced volumes totaling approximately 602,000 bpd, while Kazakhstan accounted for 389,000 bpd in January, February, and March 2024. Both nations presented plans that would ensure full compensation of overproduced volumes by the end of the year. Additionally, any excess production in April 2024 will be accommodated within the respective compensation frameworks throughout the remainder of the year.

This collaborative effort follows recent commitments made by Kazakhstan to compensate for January's overproduction, aligning with the collective efforts of OPEC+ to maintain equilibrium in oil supply.

The workshop builds upon previous initiatives aimed at enhancing compliance with production cuts and fostering transparency within the industry.

As the global energy landscape continues to evolve, OPEC remains steadfast in its commitment to ensuring market stability and sustainable oil production practices.

In February, OPEC’s second-largest producer, Iraq, said it was committed to its voluntary production cut that capped its oil production at no more than 4 million bpd.

The bloc has been under increased pressure over this last month to showcase its ability to maintain the previously agreed-upon production cuts as oil prices have trailed off.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News