The Opec+ ‘Group of Eight’ will begin easing production cuts in April in line with its December roadmap, resisting speculation that global geopolitical uncertainty would force another deferral. ‘Compensation’ cuts from overproducers are slated to offset the tapering, while the group emphasizes its flexibility to pause the process if required.
The ‘Group of Eight’ put an end to weeks of market speculation on 3 March when the producers reaffirmed that they will begin unwinding 2.2mn b/d of voluntary cuts from 1 April. With prices weakening in the buildup, speculation had been building that another deferral might be required, although MEES assessed that production increases remained the likeliest outcome (MEES, 28 February). Voluntary cuts will ease by 138,000 b/d in April as a result (see table 1).
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IN THIS ARTICLE
Tables
Opec+ Begins To Taper (‘000 b/d)
Opec Wellhead Production, February 2025 (mn b/d, MEES Calculations)
Charts
Cumulative Return Of Barrels* Under New Opec+ Roadmap To Unwind 2.2mn b/d Of Voluntary Cuts (‘000 b/d)
UAE’s OPEC+ Uplift Means Production Can Come Close To 2022’s Record Annual High This Year, Should Tapering Continue Without Pause (mn b/d)
REFERENCED MEES ARTICLES
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