{"id":317139,"date":"2025-11-30T21:34:08","date_gmt":"2025-11-30T21:34:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/317139\/"},"modified":"2025-11-30T21:34:08","modified_gmt":"2025-11-30T21:34:08","slug":"opec-holds-output-steady-approves-new-capacity-framework-through-2026","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/317139\/","title":{"rendered":"OPEC+ Holds Output Steady, Approves New Capacity Framework Through 2026"},"content":{"rendered":"

OPEC and its allies agreed on Sunday to keep oil output levels unchanged<\/a> through the end of 2026, reaffirming their production control framework amid mounting concerns over a looming supply glut and weakening prices. The decision came at the 40th OPEC and non-OPEC Ministerial Meeting, where members endorsed a new mechanism to assess national production capacities that will set the stage for fresh quotas in 2027.<\/p>\n

The group \u2014 which collectively pumps about half the world\u2019s oil \u2014 said it would reaffirm the Declaration of Cooperation signed in 2016, maintaining overall production limits agreed at the 38th ministerial meeting. The statement emphasized \u201cthe critical importance of full conformity\u201d and adherence to compensation mechanisms among members.<\/p>\n

OPEC+ ministers also empowered the Joint Ministerial Monitoring Committee (JMMC) to meet every two months and hold emergency sessions if market conditions warrant. The committee will closely monitor supply, demand, and compliance, with support from the OPEC Secretariat.<\/p>\n

The bloc also approved a new system to measure maximum sustainable production capacity (MSC) \u2014 a key technical benchmark that will inform baseline levels for output allocations beginning in 2027. The mechanism aims to resolve long-standing tensions between members such as the UAE, which has expanded capacity and wants higher quotas, and others like Nigeria and Angola, whose output has declined.<\/p>\n

While the group reaffirmed its commitment to stability, oil prices remain under pressure. Brent crude closed Friday near $63 per barrel, down about 15% since January, as traders brace for oversupply in 2026<\/a>. The International Energy Agency projects a potential surplus exceeding 4 million barrels per day next year despite higher demand estimates, while JP Morgan<\/a> sees a \u201cpersistent glut\u201d that could drive prices even lower.<\/p>\n

But while the OPEC+ press release signals unity, critics warn the pact may be more symbolic than effective. In a scathing opinion article this week, Bloomberg\u2019s Javier Blas<\/a> accused OPEC+ of \u201cartistic deception,\u201d arguing that the group\u2019s published numbers mask the true scale of supply. He pointed out that OPEC quotas apply only to \u201ccrude,\u201d excluding condensates and natural gas liquids (NGLs) \u2014 loopholes many producers now exploit.<\/p>\n

\u201cThe most dangerous element of the supposed coming oversupply is not the scale of production but financing rates above 6 percent,\u201d Blas warned \u2014 noting that cheap credit once used to store crude in contango has disappeared, crippling traders and smaller refiners.<\/p>\n

Indeed, according to Blas, some producers no longer even rely on quota loopholes \u2014 they simply exceed their limits. Independent tanker-tracking data suggests actual output, especially from the United Arab Emirates and other Gulf producers, may be significantly above the levels officially reported. Moreover, analytics firm Kpler recently noted that volumes of oil on water have surged<\/a> to levels not seen since the height of the pandemic in 2020.<\/p>\n

Looking ahead, OPEC+ will reconvene for its 41st ministerial meeting on June 7, 2026, with the Secretariat tasked to develop new cooperation programs under the 2019 Charter of Cooperation.<\/p>\n

By Tom Kool for Oilprice.com<\/p>\n

More Top Reads From Oilprice.com<\/p>\n

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