Opec+ overproducers outline new compensation plans

Spanish Market: Crude oil
21/03/25

Seven Opec+ members have submitted plans to the Opec secretariat detailing how they intend to compensate for producing above their crude production targets since January 2024.

The plans show that Iraq, Kazakhstan, Russia, the UAE, Kuwait, Oman and Saudi Arabia will reduce their combined output by an average of 263,000 b/d over the 15 months to June next year (see table).

This is to compensate for exceeding their production targets by a cumulative 4.203mn b/d between January 2024 and February 2025. This figure does not represent a monthly average, but rather the sum of the monthly volumes by which the group's overproducers have surpassed their respective output ceilings. It works out to an average monthly overproduction of 300,000 b/d in the same period.

If implemented fully, these compensation related cuts would partly offset a plan by these seven members plus Algeria to return 2.2mn b/d of voluntary production cuts starting in April over 18 months. In fact, the scheduled output increases for April and May would be entirely wiped out.

But there is no guarantee the compensation related cuts will be delivered. Some members, Iraq and Kazakhstan in particular, have largely failed to deliver on past commitments to reduce output to below their production targets.

By Aydin Calik

Opec+ overproduction compensation plan*
	Iraq	Kuwait	Saudi Arabia	UAE	Kazakhstan	Oman	Russia	Total

Mar-25	116		15		38	5	25	199
Apr-25	116	8	9	5	53	7	51	249
May-25	135	15	6	10	57	10	76	309
Jun-25	130	23		10	72	12	102	349
Jul-25	120	30		10	66	14	127	367
Aug-25	115	38		10	81	18	152	414
Sep-25	120	27		10	85	20	173	435
Oct-25	120			10	90	13		233
Nov-25	120			20	84			224
Dec-25	120			20	49			189
Jan-26	123			33	39			195
Feb-26	123			33	38			194
Mar-26	123			33	40			196
Apr-26	123			50	38			211
May-26	125			55	42			222
Jun-26	125			56	36			217
Average reduction								262.7
*the amount by which members pledge to produce below their existing targets each month

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20/03/25

Canada needs more oil pipelines: PM Carney

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Upper Mississippi River reopens for transit

20/03/25

Upper Mississippi River reopens for transit

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Nigeria's Trans-Niger oil pipeline restarts after fire

20/03/25

Nigeria's Trans-Niger oil pipeline restarts after fire

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US imports of Canadian crude at 2-year low: Update

19/03/25

US imports of Canadian crude at 2-year low: Update

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Turkish lira at all-time low against dollar

19/03/25

Turkish lira at all-time low against dollar

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