OPEC+ eyes mechanism to assess production capacity by 2027

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The OPEC+ ministers delegated the alliance's General Secretariat to develop a mechanism to assess the maximum sustainable production capacity of all member countries.

This new mechanism is to be used as baselines to determine the basic production levels for 2027 for all OPEC member states and signatories to the Joint Cooperation Pact.

At its 39th ministerial meeting, which was held online, OPEC+ kept the alliance-wide production quotas unchanged.

The alliance also kept long-term production targets for 2025 and 2026 unchanged, which are the basic framework for the current OPEC+ supply constraints.

Meanwhile, all eyes are now on Saturday's highly anticipated meeting of the eight countries that have already approved voluntary production cuts, amid expectations that they will approve an additional increase by 411,000 barrels per day in July output.