The Organisation of Petroleum Exporting Countries (OPEC) has decided to maintain Nigeria's current oil production quota of $1.5$ million barrels per day (bpd), a level that will remain in effect until December 2026.This decision, which rolls over the existing output levels for Nigeria and other participating nations, is a strategic move aimed at ensuring global oil market stability over the coming months.OPEC announced its renewed commitment to the stability of the global oil market, achieved through the continuation of the Declaration of Cooperation (DoC) framework, first signed in 2016. Key points from the OPEC and non-OPEC Participating Countries agreement include :Output Reaffirmation: The overall crude oil production level for all participating countries in the DoC, as agreed upon in the 38th Ministerial Meeting, is reaffirmed until December 31, 2026.Monitoring Mandate: The Joint Ministerial Monitoring Committee (JMMC) will continue its critical role in reviewing global oil market conditions, production levels, and adherence to the DoC. The JMMC is scheduled to meet every two months.Flexibility and Conformity: The group reiterated the importance of full conformity to the agreed-upon levels and the use of a compensation mechanism for any overproduced volume. Looking ahead to 2027, the Participating Countries approved a new mechanism developed by the OPEC Secretariat.This mechanism will be used to assess each countrys Maximum Sustainable Production Capacity (MSC), which will then serve as the reference for setting the 2027 production baselines for all DoC members.Separately, eight key OPEC+ countriesincluding Saudi Arabia, Russia, and the UAE met virtually to discuss market conditions. They reaffirmed their commitment to market stability, citing a steady global economic outlook and healthy oil market fundamentals, as reflected in low inventories.These countries confirmed their intention to maintain a cautious approach and retain full flexibility regarding any previously announced voluntary production adjustments. They also confirmed their plan to fully compensate for any overproduced volume since January 2024.These eight OPEC+ nations plan to hold monthly meetings to continuously review market conditions, conformity, and compensation efforts.
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