New production targets set by OPEC (Organization of the Petroleum Exporting Countries) to accelerate the oil market rebalancing will take effect from January 2017. OPEC is made up of a number of countries, including Ecuador, Venezuela, Algeria, Saudi Arabia, the United Arab Emirates and more.
At its 171st meeting in Vienna, members of OPEC agreed, in line with the ‘Algiers Accord’, to implement production targets of 32.5 million barrels per day, which represents the first such reduction in output since 2008. These targets, which will be effective from January 1, 2017, will accelerate the ongoing drawdown of the stock overhang and bring the rebalancing forward.
In addition to these new production levels, a high-level monitoring committee comprising oil ministers and assisted by the OPEC Secretariat will be established to monitor the implementation of the agreement.