OPEC+ extends oil production cuts into 2025

RIYADH, June 3, 2024 – OPEC+ agreed on Sunday to extend the level of overall crude oil production for OPEC and non-OPEC participating countries until 31 December 2025.

The organisation has extended production cuts of 3.66 million bopd that were due to expire at the end of 2024 until the end of 2025 and prolonged the voluntary cuts of 2.2 million bopd until the end of September 2024.

Voluntary cuts were announced in November 2023 by Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman. These are expected to be phased out on a monthly basis over the course of one year starting in Q3 2024, subject to observed market conditions.

“We are waiting for interest rates to come down and a better trajectory when it comes to economic growth… not pockets of growth here and there,” Reuters quoted Saudi Arabian energy minister Prince Abdulaziz bin Salma.

The organisation further announced it has agreed to hold its next OPEC and non-OPEC ministerial meeting on 1 December 2024.

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