OPEC Oil Production Slumps to 1980s Levels Amid Policy Shifts

OPEC’s crude oil production has contracted to levels last recorded in the late 1980s, reflecting the group’s ongoing strategy of voluntary output cuts and recent shifts in membership. The decline in total volume highlights the organization's efforts to manage global supply despite increasing competition from non-OPEC producers. Production Levels Hit Historic Lows Current data indicates that the collective output from the Organization of the Petroleum Exporting Countries has reached a multi-decade low. This trend is largely attributed to the exit of key members and the implementation of significant production curbs. The group, which has faced internal pressure over market share, continues to prioritize price stability over total volume. The UAE has played a central role in recent negotiations, successfully securing an increase in its production target. In June 2024, OPEC+ agreed to allow the UAE to raise its production capacity by 300,000 barrels per day (bpd), a move that will be phased in starting in January 2025. This adjustment follows the UAE’s push to better utilize its expanded production infrastructure. Membership Shifts and Market Impact The landscape of the group changed…