OPEC+ producers maintain current production levels for next year, with a significant decision made to assess sustainable production capacities for 2027 quotas. A new mechanism will determine maximum sustainable production capacities, aiding in more transparent and fair production level determinations. The assessment will occur between January and September 2026, with ongoing annual evaluations.

The new quota assessment mechanism aims to resolve disputes over production quotas, especially with producers like Iraq, UAE, and Kuwait seeking higher baselines due to capacity expansions. Former member Angola left OPEC in 2024 after disagreements over production quotas. The assessment process will involve a detailed evaluation of production capacities to ensure fair allocations.

Saudi Arabia hails the new mechanism as a turning point in OPEC+ policy, providing a transparent approach to managing the market and production levels. The Gulf OPEC producers, including Saudi Arabia and the UAE, are expected to benefit from the new mechanism by incentivizing high capacity levels and production increases. Plans to raise capacity levels are in place to maintain oil-producing potential and global energy security.

Gulf producers such as the UAE and Iraq are planning to significantly increase production capacity in the coming years to meet rising demand and compensate for previous underperformance. The ongoing race to invest in additional capacity among core OPEC producers aims to capitalize on vast oil reserves and maintain market share. The new quota mechanism will help OPEC producers secure higher baselines and increase long-term market influence.

Read more at Yahoo Finance: New OPEC Plan Sets Off a Global Race for Spare Capacity