Opec+ ministers signed a historic agreement on 30 November that paves the way for a transformative revamp of how the group sets production baselines and quotas from January 2027 onwards. These changes are not just an internal bureaucratic matter, but will have pronounced, real-world implications by improving the effectiveness of Opec+ market management.
In its post-meeting communique, Opec announced that during the Opec+ ministerial meeting, “the Participating Countries approved the mechanism developed by the Secretariat.” Under the mechanism a third-party consulting firm will be contracted to provide a comprehensive assessment of each country’s Maximum Sustainable Capacity (MSC), which will then be used to inform baselines from which production cuts will be made. (CONTINUED - 2053 WORDS)
