OPEC + countries agreed on Sunday to extend most of their oil production cuts for 2024, but begin phasing them out in 2025 as the group seeks to support the market amid slow global demand growth. This is reported by Reuters, reports UNN.
Details
Oil prices are trading at around 8 80 a barrel, which is lower than many OPEC+ members need to balance their budgets. Concerns about slow demand growth in China, the largest oil importer, are putting pressure on prices along with an increase in oil reserves in developed countries
OPEC + members are currently cutting production by a total of 5.86 million barrels per day, or about 5.7% of global demand.
The reduction includes 2 million barrels per day by all OPEC+ members, the first round of nine-member voluntary cuts of 1.66 million b/d, and the second round of eight-member voluntary cuts of 2.2 million b/d.
OPEC + has extended the first round of cuts until the end of 2025 from the end of 2024, the group said in a statement.
It also agreed to extend the third round of voluntary cuts until the third quarter of 2024, agency sources at OPEC+ said, adding that more details are being worked out.
Countries that made voluntary cuts in the second round are Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia and the United Arab Emirates, as well as Gabon. The same countries participated in the third round, with the exception of Gabon.
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