London,
(ONA) — OPEC+ today agreed to extend most of its oil output cuts well into 2025, exceeding market expectations, as the group seeks to shore up the market amid tepid demand growth and high interest rates.
The Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, have made a series of output cuts since late 2022.
OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd), or about 5.7% of global demand.
Those include 3.66 million bpd of cuts, which were due to expire at the end of 2024, and voluntary cuts by eight members of 2.2 million bpd, expiring at the end of June 2024.
OPEC+ today agreed to extend the cuts of 3.66 million bpd by a year until the end of 2025 and prolong the cuts of 2.2 million bpd by three months until the end of September 2024.
OPEC will spend one year on gradually phasing out cuts of 2.2 million bpd starting from October 2024 until the end of September 2025, three OPEC+ sources said.
OPEC+ is scheduled to hold its next meeting on 1 December 2024.
