OPEC+ Extends Supply Cuts to March 2025
In a move to support market stability, OPEC+ has agreed to extend their supply cuts for three more months through March 2025.
Countries within OPEC+, including major players like Saudi Arabia and Russia, have committed to extending their additional voluntary adjustments of 2.2 million barrels per day until the specified end date, as stated in an official alliance announcement.
During a virtual meeting held on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting, discussions centered around the importance of market stability and the need for continued cooperation among member nations.
The meeting also highlighted the importance of overproducing countries adhering to their pledges to achieve full conformity and submitting their updated compensation schedules to the OPEC Secretariat by the end of December 2024.
Looking ahead, the alliance members have decided to gradually phase out the additional voluntary adjustments of 2.2 million bpd on a monthly basis until the end of September 2026. This monthly increase can be adjusted based on market conditions at the time.
Currently, OPEC+ members are withholding 5.86 million bpd of output, which accounts for approximately 5.7 percent of global demand, in efforts to support market stability and prevent oversupply.
Additionally, the alliance has granted the UAE permission to gradually increase output by 300,000 bpd from April to September 2026, deviating from the original plan to start in January 2025.
Despite these supply cuts, global oil benchmark Brent crude has fluctuated within a range of $70 to $80 per barrel this year. As of Thursday, the price of Brent crude was hovering around $72 per barrel, having reached a low point below $69 in September 2024.