OPEC+ Countries Extend Output Cuts to End of December in Response to Weak Oil Prices
The OPEC+ oil-producing group, comprising eight member countries, has decided to further extend their voluntary output cuts by a month, pushing the reductions through the end of December in response to ongoing weak oil prices.
Who’s Involved?
OPEC+ is a group of oil-producing countries, comprising the Organisation of the Petroleum Exporting Countries (OPEC) and its allies. The eight countries participating in these cuts are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.
Extension of Cuts
In a 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. This decision follows an earlier move in September when the eight countries extended their voluntary production cuts, originally due to expire at the end of September, by an additional two months.
Commitment to Conformity
The countries also reiterated their commitment to “achieve full conformity” with their production targets and to compensate for any overproduction by September 2025.
Oil Prices
Oil prices have generally trended downward in recent weeks amid concerns over slowing global demand.
Conclusion
In conclusion, the OPEC+ countries have decided to extend their output cuts to the end of December in response to weak oil prices. This move is aimed at achieving full conformity with their production targets and compensating for any overproduction by September 2025.
Frequently Asked Questions
Q: Why have OPEC+ countries extended their output cuts?
A: The OPEC+ countries have extended their output cuts to respond to ongoing weak oil prices.
Q: Which countries are participating in the output cuts?
A: The eight countries participating in these cuts are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.
Q: How long will the output cuts be extended?
A: The output cuts will be extended until the end of December 2024.