OPEC+ oil alliance extends collective crude oil production cuts until 2025 – NBC New York

• The influential Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, agreed on Sunday to extend their official crude production agreement until 2025.
• The coalition will collectively produce 39.725 million barrels per day next year, according to a table published by the OPEC Secretariat.

The influential Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, agreed on Sunday to extend their official crude production cuts until 2025.

The coalition will collectively produce 39.725 million barrels per day next year, according to a table published by the OPEC Secretariat. The figure marks the required production levels of individual members before any additional production adjustments are applied and takes into account the group’s exit from long-time OPEC member Angola earlier this January.

It also includes an increase in UAE production by 300,000 barrels per day, which will be phased in from January 2025 to the end of September next year.

Speaking to CNBC, analysts and OPEC+ delegates had previously flagged a high probability that the alliance of oil producers would extend its existing supply cuts.

Through the end of June, OPEC+ producers are making a combined 5.86 million barrels per day of supply cuts, of which 2 million barrels per day represented unanimous commitments under the OPEC group’s policy covering this year. . A subset of the alliance is voluntarily cutting another 1.66 million barrels through the end of 2024, while a second set of 2.2 million barrels per day of voluntary cuts extends through the end of the second quarter.

The group’s attention has shifted to supply-demand balances amid the seasonal start of the summer driving season and the end of refinery maintenance in the world’s largest crude importer, China. Institutional opinions diverge sharply: OPEC’s latest monthly oil market report for May forecasts an increase of 2.25 million barrels per day this year. Meanwhile, the Paris-based International Energy Agency’s Oil Market Report from last month points to an increase in demand of just 1.06 million barrels per day.

This breaking news is being updated.