OPEC+ Announces Extension of Cuts Until 2025

The group of oil-producing countries plus Russia, or OPEC+, has announced extension of crude oil production cuts until the end of 2025. This measure aims to maintain price levels during times of great volatility.

Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman met on June 2 in Riyadh, Saudi Arabia, for the 37th Ministerial Meeting of OPEC and non-OPEC countries. Here, the decision was made to extend tightening in light of weak demand growth (especially from China) and increased non-OPEC production. Overall, production is down 5.86 million bpd, representing 5.7% of global demand.

Thus, under the Riyadh Agreement, the 3.66 million bpd cut that was due to expire at the end of 2024 is extended until December 2025, and the voluntary 2.2-million bpd cut that was due to expire in May 2024 is extended until September 2025.