Eight member countries of the OPEC+ oil-producing group have announced an extension of their voluntary oil output cuts by one month, prolonging the reductions through the end of December. This move comes in response to continued weak oil prices affecting the global market.
The countries participating in the extended cuts are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman. These nations collectively agreed to maintain their reduced production levels to stabilize the oil market.
In an official statement, OPEC confirmed that these countries have “agreed to extend the November 2023 voluntary production adjustments of 2.2 million barrels per day for one month until the end of December 2024.” The group emphasized their commitment to “achieve full conformity” with the production targets and to compensate for any overproduction by September 2025.
This decision follows an earlier move in September when the eight countries extended their voluntary production cuts, initially set to expire at the end of September, by an additional two months. The continued extensions reflect ongoing concerns over surplus supply and the need to bolster oil prices.
The global oil market has witnessed a downward trend in prices in recent weeks amid concerns over slowing global demand. The extended production cuts by key OPEC+ members aim to address this issue by reducing supply and supporting price stability.
Analysts suggest that the prolonged output reductions could help rebalance the market but also caution that the effectiveness of these measures depends on global economic conditions and compliance among the participating countries.
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8 OPEC+ members extend voluntary oil output cuts by one month
cgtn.com
