OPEC+ countries extend voluntary oil production cuts until 2025

OPEC+ yesterday announced that eight oil producing countries, including Saudi Arabia, the UAE, Kuwait and Oman, have extended the voluntary oil production cuts until the end of December.

The Saudi Press Agency (SPA) quoted the OPEC Secretariat as saying that “the eight OPEC+ countries Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, which previously announced additional voluntary adjustments in April and November 2023, have agreed to extend the November 2023 voluntary production adjustments of 2.2 million barrels per day for one month until the end of December 2024.”

The OPEC+ alliance has been implementing a mandatory oil production cut of more than 3.6 million barrels per day since November 2022, in addition to voluntary cuts of varying amounts by members led by Saudi Arabia that began in April 2023 and will continue until the end of this year after the latest announcement.

Saudi Arabia’s oil production currently stands at less than ten million barrels per day, compared to the normal average of 11 million barrels per day.

Crude oil prices have been fluctuating between $73-$85 per barrel for nearly nine months for geopolitical and economic reasons, while oil producers are seeking an average of $95 per barrel.

No reason has been given for the latest extension, however it is thought the US elections which are being held this week may have led to the decision.

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