OPEC+: Production increase to be suspended in March 2026 to support market stability
In a strategic move aimed at maintaining balance in global energy markets, the eight member countries of the OPEC+ alliance held a crucial virtual meeting on February 1, 2026. The meeting included Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman. The purpose of the meeting was to conduct a thorough review of the latest developments in the oil market and assess future supply and demand prospects.
Details of the decision to suspend increases
The eight participating countries concluded by reaffirming their previous decision issued on November 2, 2025, to suspend the planned increases in oil production during March 2026. The statement issued by the group attributed this decision to the need to deal cautiously with the "seasonal factors" that usually affect global demand rates at this time of year, which necessitates adjusting supply to ensure that there is no glut in the markets.
Context of voluntary reductions and flexibility
The member states affirmed that the previously agreed production cuts of 1.65 million barrels per day remain subject to ongoing review. They clarified that the reintroduction of these quantities to the market, whether partially or fully, will be gradual and carefully considered, based on a thorough analysis of daily market fluctuations.
As part of ongoing efforts to support stability, the G8 countries reiterated the importance of adopting a cautious approach and maintaining full flexibility. This includes being prepared to continue suspending or even reversing additional voluntary production adjustments if necessary. This comes in the context of managing the previous reductions of 2.2 million barrels per day announced in November 2023, which have been a cornerstone of the Alliance’s strategy over the past years.
The importance of the decision and its economic impact
This decision is particularly significant given the global economic challenges and volatile energy markets. Historically, the OPEC+ alliance has played a pivotal role in shielding the global economy from severe oil shocks by balancing supply with actual demand. This latest move is interpreted as a reassuring message to investors and markets that major producers are committed to preventing harmful price volatility and maintaining price levels that support investment in the energy sector while remaining affordable for consumers.
Monitoring and future compliance
The eight countries reaffirmed their firm commitment to the Declaration of Cooperation, including additional voluntary adjustments. Compliance with these commitments will be closely monitored by the Joint Ministerial Monitoring Committee (JMMC), the mechanism that ensures the credibility of the alliance and the effectiveness of its decisions. The countries also confirmed their intention to fully offset any overproduction that may have occurred since January 2024, to ensure equitable distribution of the production cuts.
The group concluded its meeting by agreeing to hold regular monthly meetings to closely monitor market developments, track compliance levels, and implement compensation plans. The next meeting is scheduled for March 1, 2026, to reassess the situation.
