OPEC+ Decides to Cut Production Until the End of Next Year: Members of the OPEC+ alliance agreed on Sunday
to extend the current oil production cuts until the end of 2025.
This decision was made to support oil prices, which have been affected by various factors causing a decline.
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According to the statement issued by OPEC+, which includes 22 members comprising all OPEC countries
and ten allied nations led by Russia and Saudi Arabia,
crude oil production levels will be maintained at their current levels from January 1, 2025, until December 31, 2025.
Brent crude oil recorded a decline of 0.62%, reaching $81.37 at the end of last week,
while Texas crude oil fell by 0.94%, reaching $77.18.
These cuts followed OPEC+’s series of production cuts at the end of 2022 to support low oil prices.
In addition to extending production cuts, OPEC+ agreed to increase the
United Arab Emirates production by 300,000 barrels per day for the next year.
The UAE is one of the countries that agreed to reduce its
production at Saudi Arabia’s request to share the burden and support oil prices.
Despite this, due to concerns about global demand,
there are expectations of a gradual increase in oil supplies in 2025.
Regarding future forecasts, OPEC continues to affirm its demand outlook for 2024,
while the International Energy Agency has reduced its demand estimates.
OPEC+ Decides to Cut Production Until the End of Next Year