OPEC+ extends output cuts to support prices until end of 2025: Statement

The OPEC+ group of oil-producing nations agreed Sunday to extend their production cuts in a bid to support prices, as economic and geopolitical uncertainty looms over the market.

The 12-member oil group and its 10 allies decided to “extend the level of overall crude oil production… starting 1 January 2025 until 31 December 2025,” a statement by the alliance said.

In addition, eight countries said they would also extend voluntary supply cuts made at Riyadh’s request to further support the market: Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.

Some of those cuts will run until September before being phased out, while others will be kept in place until December 2025.

The decisions came after the biannual meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its 10 partners.

The group-wide supply cuts amount to about two million barrels per day (bpd).

Adding the series a voluntary cuts, OPEC+ members are currently slashing output by almost six million barrels per day overall to bolster flagging oil prices.

OPEC+ also agreed to allow the United Arab Emirates to increase its production target by 300,000 bpd for next year, a statement said.

The UAE had pledged to make additional voluntary output cuts at the request of Saudi Arabia, which wanted to share the burden of cuts in an effort to support prices.

Oil prices have changed little since the last meeting in November, hovering at around $80 a barrel.

OPEC continues to stick to its demand forecasts for 2024, while the International Energy Agency has lowered its estimates.