Oil Prices Climb as OPEC+ Extends Production Cuts to Late 2024: Oil prices increased significantly on Monday,
driven by the OPEC+ alliance’s decision to extend voluntary production
cuts for an additional month amid challenges faced by oil markets due to weak global demand,
particularly from China, and increased supply from non-member countries.
Brent crude futures for January delivery rose by 1.70%, or $1.24, reaching $74.34 per barrel at 9:00 a.m. Mecca time.
U.S. WTI crude futures for December delivery also climbed by 1.83%, or $1.27, reaching $70.76 per barrel.
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The OPEC Secretariat confirmed in a statement that the eight key member countries of the OPEC+
alliance: Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman
had agreed to extend the additional voluntary production adjustments announced in November 2023.
The voluntary cuts, totaling 2.2 million daily barrels, will continue through December 2024.
The Saudi Press Agency reported that these nations reaffirmed their commitment
to the Declaration of Cooperation and voluntary adjustments,
which will be monitored by the Joint Ministerial Monitoring Committee,
which held its 53rd meeting on April 3, 2024.
The statement also included a plan to offset any excess production since January 2024,
with this compensation to be completed by September 2025.
The alliance reaffirmed its commitment to achieving agreed
objectives to maintain market stability amid current challenges.
The decision to extend the cuts comes as global oil demand,
especially from China, declines alongside rising supply from non-member countries,
increasing pressure on oil prices.
The alliance aims to protect prices from falling and stabilize
oil markets while ensuring that members adhere to the agreed production cuts.
Oil Prices Climb as OPEC+ Extends Production Cuts to Late 2024