OPEC+ Adopts New Mechanism to Stabilize Oil Markets and Encourage Investment

OPEC+ has introduced a new mechanism to assess members' maximum output capacity, aimed at stabilizing oil markets and rewarding investment. This mechanism, approved to set production baselines from 2027, is deemed fair and transparent by Saudi Energy Minister Prince Abdulaziz. The move seeks to manage production levels and attend to market stability.

OPEC+, the coalition of oil-producing countries, has implemented a new mechanism designed to evaluate members' maximum output capacity, effectively aiding market stabilization and benefiting those who invest in oil production, according to Saudi Energy Minister Prince Abdulaziz bin Salman.

This decision, highlighted on Sunday, sees the approval of a thorough and transparent approach to determining production baselines, set to commence from 2027, ensuring fair output quotas. The evaluation process will take place between January and September 2026, guiding future production targets.

Despite challenges, including capacity increases by some members and cuts resisted by others, Prince Abdulaziz hailed the collaborative effort during its announcement at a Saudi-Russian business forum in Riyadh, marking a significant milestone in oil production management.

(With inputs from agencies.)