OPEC+ Oil Production Increase: 137,000 Barrels Per Day Starting December
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OPEC+ Maintains Cautious Oil Production Approach, Extends output Cuts
Overview
On november 26, 2023, the Association of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, announced a modest increase in oil production for December 2023, coupled with a decision to maintain current output levels through the first quarter of 2024. This signals a continued cautious approach to balancing global oil supply and demand.
Production Adjustments: Details
The OPEC+ group will increase collective oil production by 137,000 barrels per day (bpd) in December 2023, mirroring similar modest increases implemented in October and November 2023. This increase is relatively small compared to the group’s overall production capacity. The decision was formalized in an official declaration released by OPEC on November 26,2023.
Crucially, the group decided to refrain from further production increases in the first quarter of 2024. This suggests a desire to avoid oversupplying the market and perhaps driving down prices.
Participating Nations
Eight countries will contribute to the December production increase: Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and oman. Of thes,Saudi Arabia,Iraq,the UAE,Kuwait,and Algeria are members of OPEC,while russia,kazakhstan,and Oman are part of the broader OPEC+ alliance.
| Country | OPEC Member? | December 2023 Production Increase (bpd) |
|---|---|---|
| Saudi Arabia | Yes | Data not publicly specified |
| Russia | No | Data not publicly specified |
| Iraq | Yes | Data not publicly specified |
| United Arab Emirates | Yes | Data not publicly specified |
| Kuwait | Yes | Data not publicly specified |
| Kazakhstan | No | Data not publicly specified |
| Algeria | Yes | Data not publicly specified |
| Oman | No | Data not publicly specified |
*Note: Specific production increases for each country were not detailed in the official OPEC+ announcement as of November 27, 2023.*
Market Context and Rationale
The OPEC+ decision reflects a cautious assessment of the global economic outlook and current oil market fundamentals. The group cited “stable global economic outlook and current healthy market fundamentals reflected in low oil inventories” as justification for its approach, according to the