meed-logo

line1 line2 line3
SIGN IN / REGISTER

Opec+ decides to adhere to oil production policy

5 February 2025

Register for MEED’s 14-day trial access 

The Opec+ group of oil producers has decided to adhere to its policy of gradually increasing oil production from April, resisting pressure from US President Donald Trump to lower oil prices by raising output in the short term.

In a statement issued after a meeting of oil ministers from member countries of the Opec+ alliance, which took place via videoconference on 3 February, Opec said: “The Joint Ministerial Monitoring Committee (JMMC) emphasised the critical importance of achieving full conformity and compensation, and reaffirmed that they will continue to monitor adherence to the production adjustments agreed upon at the 38th Opec and non-Opec ministerial meeting held on 5 December 2024.”

At their meeting on 5 December, the Saudi Arabia and Russia-led alliance of Opec and non-Opec members had decided to slowly raise crude production from April. The coalition members also extended the full unwinding of output cuts by a year, until the end of 2026, due to weak demand and booming production outside the group.

Opec+, which pumps about half the world’s oil, had planned to start unwinding cuts from October last year. However, a slowdown in global demand and rising output elsewhere forced the group to postpone the plans several times.

Opec+ members are holding back 5.86 million barrels a day (b/d) of output, or about 5.7% of global demand, in a series of steps agreed since 2022 to support the market.

The steps include 2 million b/d of cuts by the whole group, 1.65 million b/d of the first stage of voluntary cuts by eight members – Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman – and another 2.2 million b/d of the second stage of voluntary cuts by the same eight members.

At their December meeting, Opec+ agreed to extend the 2 million b/d and the 1.65 million b/d of cuts until the end of 2026 from the end of 2025.

Despite the grouping’s supply cuts, global oil benchmark Brent crude averaged around $81 a barrel in 2024. 

The Opec statement issued after the 3 February meeting added: “The members of the JMMC who participated in the additional voluntary production adjustments plan announced on 5 December 2024 reaffirmed their commitment, noting that these additional voluntary production adjustments have ensured the stability of the oil market.

“The JMMC will also continue to monitor the additional voluntary production adjustments announced by some participating Opec and non-Opec countries as agreed upon in the 52nd JMMC held on 1 February 2024,” it added.

Opec+ vs Trump

Opec+ and Trump repeatedly found themselves at loggerheads during his first term in office between 2016 and 2020, when the US president demanded that the coalition raise production to compensate for the drop in Iranian supply that resulted from US sanctions.

Opec’s meeting on 3 February came after Trump asked the alliance to lower crude prices, claiming cheaper oil could help end the war between Russia and Ukraine.

At the World Economic Forum in Davos, Trump said: “I’m also going to ask Saudi Arabia and Opec to bring down the cost of oil. You got to bring it down, which, frankly, I’m surprised they didn’t do before the [US presidential] election.

“If the price came down, the Russia-Ukraine war would end immediately. Right now, the price is high enough that that war will continue.”

Russia’s deputy prime minister Alexander Novak, who also acts as the country’s oil minister, said Opec+ ministers discussed Trump’s call to raise crude production during their recent meeting, and agreed that the alliance would start boosting output from 1 April, in line with their previous commitments.

Separately, the JMMC also changed the list of consultants and other firms Opec+ uses to monitor its production, known as secondary sources.

“After thorough analysis from the Opec Secretariat, the [JMMC] Committee replaced Rystad Energy and the [US government’s] Energy Information Administration (EIA) with Kpler, OilX and ESAI, as part of the secondary sources used to assess the crude oil production and conformity,” Opec+ said in its 3 February statement.

One Opec+ source told Reuters that the removal of EIA data was because the agency was not communicating the information required and that politics did not drive the decision.

READ THE FEBRUARY MEED BUSINESS REVIEW

Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes:

> WATER & WASTEWATER: Water projects require innovation
https://image.digitalinsightresearch.in/uploads/NewsArticle/13361866/main.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait grants loan for GCC grid extension study

    8 September 2026

    The Kuwait Fund for Arab Economic Development has signed a KD200,000 ($647,000) grant agreement with the GCC Interconnection Authority (GCCIA) to finance a feasibility study on extending the Gulf power grid to electricity networks outside the GCC.

    The agreement was signed on 3 September by Ahmed Bin Ali Al-Ibrahim, CEO of the GCCIA, and Kuwait Fund acting director general Rashid Al-Bader.

    The study will assess opportunities to expand the GCC power interconnection system to neighbouring countries. It will examine their electricity requirements and the technical and economic feasibility of connecting their national grids to the Gulf network.

    The Kuwait Fund did not identify the countries or potential interconnection routes. However, it is understood that the study will identify potential phases for future expansion, determine priority projects and assess the most appropriate interconnection options based on technical and economic criteria.

    It will cover the proposed project’s main components, costs, implementation arrangements and expected timeframe. The study will also assess the potential economic and social benefits for GCC member states and connected countries, as well as how the GCC network would operate alongside neighbouring national grids.

    A preliminary assessment of the project’s potential environmental and social impacts will also be carried out, together with proposed mitigation measures.

    The Kuwait Fund has previously provided three loans worth a combined KD78m ($252m) to GCCIA to support expansion of the GCC power interconnection system and its connection to southern Iraq’s electricity grid.

    In August 2025, the fund announced two loans worth KD70m ($224m) for the expansion of the Gulf Power Interconnection Project. The financing included support for the Al-Wafra 400kV substation and infrastructure connecting Kuwait’s grid with Iraq. 

    The Al-Wafra substation facilitates electricity exchanges and enables Kuwait to access surplus power available through the GCC interconnection system.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19461053/main.jpg
    Mark Dowdall
  • Chinese firm to set up $300m anode facility in the UAE

    8 September 2026

    Beijing-headquartered Sunstone Development has signed a memorandum of understanding (MoU) with the UAE Ministry of Investment to develop an anode production facility in the UAE, with an estimated investment of about $300m.

    The MoU follows Sunstone’s December 2025 joint-venture agreement with Emirates Global Aluminium (EGA) to build the project.

    Upon completion, the plant is expected to replace most of EGA’s current anode imports and support the UAE’s ambition to become one of a limited number of global anode-exporting countries, aligning with the Make It In The Emirates initiative and Operation 300bn.

    The ministry said the agreement reflects its role in helping strategic investors navigate the UAE’s investment ecosystem and convert commitments into long-term operations, in line with the National Investment Strategy 2031.

    By localising a key stage in the aluminium value chain, the facility will reduce reliance on imported anodes, enhance the competitiveness of the UAE aluminium sector and support wider economic diversification.

    The Ministry of Investment and Sunstone will establish a joint working group, chaired by the ministry, to oversee project delivery.

    The project is expected to create skilled employment opportunities for UAE nationals and residents, while strengthening domestic manufacturing capacity and industrial capabilities.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19461120/main.jpg
    Yasir Iqbal
  • Riyadh tenders Expo 2030 Souq areas package

    8 September 2026

     

    Expo 2030 Riyadh Company (ERC), responsible for delivering the Expo 2030 Riyadh venue, has tendered a contract to deliver the Souq areas within the Expo site.

    The tender was floated on 30 July, with a submission deadline of 9 October.

    The Souq areas are divided into five distinct precincts, with a total development area of about 300,000 square metres (sq m).

    The scope includes the five precincts and their associated vertical elements, infrastructure and public realm works. 

    The precincts comprise:

    • Precinct 1 – The Icon: 41,417 sq m
    • Precinct 2 – Place & Planet: 62,306 sq m 
    • Precinct 3 – Culture of Wisdom: 67,112 sq m  
    • Precinct 4 – Kingdom of Saudi Arabia: 45,967 sq m  
    • Precinct 5 – Adaptation & Innovation: 82,358 sq m

    The package will interface with three public parks. It will also tie into the Natural Corridor, including bridges.

    The Souq areas will form a mixed-use destination at the centre of Expo 2030 Riyadh, providing a central connection between the site’s iconic and thematic assets.

    The development will include rented and partnership pavilions, alongside a range of food and beverage, retail and visitor-experience offerings.

    Site progress

    Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.

    Earlier this month, Saudi Arabia’s Royal Commission for Riyadh City (RCRC) awarded a design-and-build contract for the construction of a new metro station catering to the Expo 2030 site.

    In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Alyamama Company.

    The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.

    These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.

    That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems, and electric vehicle charging stations.

    The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.

    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19457171/main.jpg
    Yasir Iqbal
  • Powering the next chapter with nuclear energy

    8 September 2026

    Commentary
    Colin Foreman
    Editor

    Nuclear energy is increasingly being viewed as essential around the world. It offers a non-CO2-emitting, steady baseload at a time when governments have made net-zero commitments. 

    In the Gulf, the UAE has spent the past 15 years building the Middle East’s first commercial nuclear plant, now supplying about a quarter of the country’s electricity. What is new is the breadth of ambition beyond Abu Dhabi. The civil nuclear cooperation deal signed between Saudi Arabia and the US in July is the most significant step in the kingdom’s nuclear programme for several years, and it lands as the region moves decisively towards atomic power.

    The logic is clear. Electricity demand from industry, desalination and digital infrastructure is climbing, and governments want reliable low-carbon supply to meet it. Saudi Arabia is targeting up to 17GW of nuclear capacity by 2040. Its first plant at Khor Duwaiheen, comprising two 1.4GW reactors, represents only about a sixth of that goal, which points to a programme rather than a one-off.

    What is new is the breadth of ambition beyond Abu Dhabi

    The opportunity extends well beyond reactors. The UAE’s nuclear programme shows the scale of the economic impact. More than 2,000 local firms secured contracts worth over $6.7bn supporting construction, operations and maintenance. 

    Saudi Arabia’s ambitions reach further still, into small modular reactors, domestic uranium and elements of the fuel cycle. At the same time, Bahrain is studying a modular plant to power its industrial base, and Egypt’s 4.8GW El-Dabaa project is already under construction, with first generation expected in 2028.

    For contractors, engineers and financiers, this is the beginning of a projects market that will unfold over decades. The reactor awards will grab the headlines, but the supporting ecosystem, from regulation and fuel supply to workforce development, is where much of the value lies.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19461185/main.gif
    Colin Foreman
  • WEBINAR: Mena Water & Wastewater Projects Market 2026

    8 September 2026

    Webinar: Mena Water & Wastewater Projects Market 2026
    Thursday 24 September 2026 | 11:00 AM GST  |  Register now

    Agenda:

    • GCC water projects outlook
    • Key water projects and contracts awarded year to date
    • Market trends, opportunities and challenges
    • Key tenders and awards over the next 18 months
    • Long-term capital expenditure outlays and forecasts
    • Top contractors and clients
    • Spending by segment: desalination, storage, transmission and treatment
    • Evolution of PPP models in water projects
    • Key drivers and challenges going forward
    • Audience Q&A

    Hosted by: Mark Dowdall, MEED’s power & water editor

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19459896/main.gif
    Mark Dowdall