OPEC+, a group of 23 oil-producing nations led by Saudi Arabia and Russia, will meet on Sunday to decide on the next phase of production policy.
Bloomberg Bloomberg Getty Images
The Organization of the Petroleum Exporting Countries and its influential allies, known as OPEC+, on Sunday agreed to extend official crude oil production cuts to 2025.
The coalition will produce a combined 39.725 million barrels per day next year, according to a table published by the OPEC Secretariat. The figure marks the required level of production from individual members before implementing additional production adjustments and factors in the departure of longtime OPEC member Angola in early January.
It also includes an increase in UAE output by 300,000 barrels per day, which will be phased in from January 2025 until the end of September next year.
In a Google-translated statement carried by the state-owned Saudi Press Agency, part of the OPEC+ alliance, which includes the kings of Saudi Arabia and Russia, said it would extend a set of nearly 1.7 million barrels per day of voluntary cuts set to expire at the end of this year. The reduction will now take place throughout 2025.
The smaller group of OPEC+ members will also reduce voluntary production cuts by a total of 2.2 million barrels per day until the end of the third quarter of this year. The trim was initially only scheduled to last until the end of the second quarter.
“The amount of this reduction, which is 2.2 million barrels per day, will then be restored gradually, every month, until the end of September 2025,” the statement said.
Speaking to CNBC, analysts and OPEC+ delegates previously signaled a strong possibility that the alliance of oil producers would extend existing supply cuts.
The group’s focus has shifted to balancing supply demand amid the start of the summer driving season and the end of refinery maintenance in the world’s biggest crude importer, China. Institutional views differ widely, with OPEC’s latest Monthly Oil Market Report in May forecasting an increase of 2.25 million barrels per day this year. The Paris-based International Energy Agency’s Oil Market Report last month showed only an increase in demand of 1.06 million barrels per day.
This news item is being updated.
