The Organisation of Petroleum Exporting Countries (OPEC) and its partners in the OPEC+ alliance have agreed to extend most of deep oil output cuts until the end of 2025. OPEC+ has agreed to prolong the oil cuts of 3.66 mbl/d by a year until the end of 2025 and to extend the cuts of 2.2 mbl/d by three months until the end of September 2024. The organisation will gradually phase out the cuts of 2.2 mbl/d over the course of a year from October 2024 to September 2025.
OPEC+ and allies led by Russia have made a series of deep output cuts since late 2022. OPEC+ members are currently cutting output by a total of 5.86 mbl/d, or about 5.7% of global demand. The voluntary cuts are reported as follows: Saudi Arabia by 1,000 kb/d, Iraq by 220 kb/d, the UAE by 163 kb/d, Kuwait by 135 kb/d, Kazakhstan by 82 kb/d, Algeria by 51 kb/d, and Oman by 42 kb/d. Russia also announced plans to reduce its production by an extra 471 kb/d in June 2024.
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