OPEC receives updated compensation plan from four countries

OPEC receives updated compensation plans from Iraq, the UAE, Kazakhstan, and Oman, which will continue until June

The OPEC Secretariat announced on Wednesday that it had received updated compensation plans from Iraq, the UAE, Kazakhstan, and Oman, which will continue until June.

According to a statement published on OPEC's official website on Wednesday, the move follows the outcomes of the virtual meeting held by the eight member countries at the end of November, aimed at adjusting oil supply to ensure price stability amidst current geopolitical and economic challenges.

Under this commitment, the four countries will reduce their production by specific amounts to compensate for their overproduction of oil above their previously agreed quotas. The monthly reductions will range between 267,000 and 829,000 barrels per day (bpd).

The plan indicates that Kazakhstan will bear the largest share of the compensation, with its production scheduled to decrease by approximately 670,000 bpd during May and June, compared to 131,000 bpd in December.