OPEC+ members, after previously adding voluntary oil production cuts in April and November 2023, are extending the cuts once again for 2 months as crude oil and fuel prices continue their slump, OPEC said in a release Sept. 5.
The countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates (UAE), Kuwait, Kazakhstan, Algeria, and Oman, held a virtual meeting on Sep. 5, 2024. The eight participating countries agreed to extend the cuts of 2.2 million b/d until the end of November 2024, after which, the cuts will be phased out on a monthly basis as scheduled starting Dec. 1, 2024, stretching to November 2025, with the flexibility to pause or reverse the adjustments as necessary.
The group includes Iraq and Kazakhstan, who have overproduced since January 2024, but have reaffirmed their commitment to the agreement that the entire overproduced volume will be fully compensated for by September 2025, the release stated.
Despite sustained output cuts and ongoing geopolitical tensions in the Middle East, oil prices have fallen this year. Rising concerns on oil demand in China, the world's largest oil importer, and record production from the US have kept prices low.
