Reported 6 months ago
OPEC and its allies, known as OPEC+, have decided to continue oil output reductions until 2025 to stabilize the market due to slow demand growth, high interest rates, and increasing US production. With Brent crude trading near $80 per barrel, below the breakeven point for some OPEC+ countries, concerns over sluggish demand growth, especially from China, the top oil importer, persist. OPEC+ initiated substantial output cuts in late 2022, with current cuts at 5.86mbbl/d. In a recent meeting, OPEC+ agreed to prolong the 3.66mbbl/d cuts until end-2025 and the 2.2mbbl/d cuts until September 2024, intending to phase them out over a year starting October 2024. Saudi Energy Minister Prince Abdulaziz bin Salman mentioned that OPEC+ might reverse easing cuts or reinstate them if demand falls short of expectations, as the International Energy Agency recently revised its 2024 oil demand growth forecast downwards.
Source: YAHOO