Baghdad: Eight members of the OPEC+ alliance have reached an agreement to maintain a freeze on oil production increases during the first quarter of 2026. This decision follows a prior agreement made in November to suspend production increases for the same period this year.
According to National Iraqi News Agency, the OPEC+ alliance, which is responsible for producing nearly half of the world’s oil, made this decision in response to a significant decline in oil prices. In 2025, oil prices fell by over 18 percent, marking the largest annual decline since 2020.
The countries involved in this agreement include Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman. In a joint statement, these nations reiterated their commitment to maintaining market stability, citing a stable global economic outlook and strong fundamentals in the oil market, as evidenced by declining inventories.
The participating countries acknowledged the potential to partially or fully restore 1.65 million barrels per day, depending on market developments, in a phased approach. They emphasized the need to closely monitor and assess market conditions, stressing the importance of a cautious approach and maintaining flexibility. This includes the possibility of further suspending or canceling additional voluntary production adjustments, such as the previously announced voluntary adjustment of 2.2 million barrels per day in November 2023.
The OPEC+ members reaffirmed their dedication to achieving full agreement on additional voluntary production adjustments, which will be monitored by the Joint Ministerial Monitoring Committee. They also committed to compensating for any overproduction starting in January 2024. The statement indicated that the eight OPEC+ member countries are scheduled to hold their next meeting on February 1, 2026.
This agreement comes amidst challenges faced by the OPEC+ alliance, including pressures on Russian oil exports due to US sanctions related to the conflict in Ukraine, and internal protests in Iran coupled with US threats of intervention.
The decision to maintain production levels is part of ongoing efforts by the alliance to stabilize the oil market, following an increase in production targets by approximately 2.9 million barrels per day from April to December 2025, which is about 3 percent of global oil demand. The alliance had previously agreed not to increase production for the first three months of 2026.