Eight OPEC+ member countries - Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman - have decided to extend additional crude oil production cuts adopted in April 2023 and November 2023, due to weak demand and booming production outside the group.
In April 2023, these OPEC+ countries had decided to reduce their oil production by over 1.65 mb/d as of May 2023 until the end of 2023. These production cuts were later extended to the end of 2024 and will now be extended until the end of December 2026. In addition, in November 2023, these producers had agreed to voluntary output cuts totalling about 2.2 mbl/d for the first quarter of 2024, in order to support prices and stabilise the market. These additional production cuts were extended to the end of 2024 and will now be extended to the end of March 2025; they will then be gradually phased out on a monthly basis until the end of September 2026.
OPEC+ members have made a series of deep output cuts since late 2022. OPEC+ members are currently cutting output by a total of 5.86 mb/d, or about 5.7% of global demand. Russia also announced plans to reduce its production by an extra 471 kb/d in June 2024.
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