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Algeria will participate in a moderate increase in production in December
New concerted decision from OPEC+
Algeria and seven other OPEC+ member countries decided, the day before yesterday Sunday, to collectively increase their oil production by 137,000 barrels per day (bpd) from next December. This decision marks a measured step in the group’s strategy aimed at maintaining balance in the global market, before a temporary suspension of increases between January and March 2026. This decision was taken following a ministerial meeting, held by videoconference, bringing together the eight countries having applied voluntary production reductions since April 2023: Algeria, Saudi Arabia, the United Arab Emirates, Iraq, Kazakhstan, Kuwait, Oman and the Russia. These voluntary adjustments are a continuation of OPEC+’s coordinated efforts to cope with a still uncertain global energy environment.
The Minister of State, Minister of Hydrocarbons and Mines, Mohamed Arkab, indicated that “the decisions adopted reflect the common desire of the eight countries to preserve the balance and stability of the oil market, in a global context still marked by strong economic uncertainties”. He said the adjustment planned for December reflects “a prudent and coordinated approach that takes into account market needs and the outlook for global demand.”
The decided increase, limited to 137,000 barrels per day, represents a gradual increase, distributed between the countries concerned. Algeria’s share in this new production has been set at 4,000 barrels per day. This moderate adjustment adds to the country’s ongoing efforts to maintain its contribution to international energy stability, while optimizing the management of its resources. Concerning the suspension planned for the first quarter of 2026, the minister specified that it responds to “a logic of prudence in the face of weaker seasonal demand during this period”, thus making it possible “to preserve the coherence of the efforts undertaken and to ensure careful monitoring of market developments”. In its press release, OPEC for its part stressed that this decision is based on
“stable global economic outlook and strong market fundamentals, reflected by low oil inventory levels.” The December adjustment will thus be part of the 1.65 million barrels per day of voluntary reductions decided in April 2023. However, due to seasonality and uncertainties surrounding demand, the eight countries agreed to suspend any production increases during the first three months of 2026. OPEC insisted that member countries “will continue to closely monitor and assess market conditions, as part of their ongoing efforts to supporting stability,” while maintaining “full flexibility to pause or reverse adjustments as necessary.”
Ministers also confirmed their commitment to fully offsetting any overproduced volume since January 2024. This measure aims to guarantee collective discipline and strengthen the group’s credibility vis-à-vis international markets. Finally, the participating countries reaffirmed their desire to maintain close coordination through monthly meetings, in order to ensure regular monitoring of the implementation of commitments and to adapt their policies to market developments. The next ministerial meeting of the eight OPEC+ countries is scheduled for November 30, and should make it possible to take stock of the measures adopted, as the new adjustment phase scheduled for December approaches.
Djamila Sai