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OPEC+ Extends Oil Production Cuts Through 2025, Voluntary Cuts of 2.2 Million Bpd Until September 2024

Jun 2, 2024, 12:22 PM

OPEC+ has agreed to extend its oil production cuts through the end of 2025 in an effort to stabilize global oil prices. The group, which includes major oil-producing nations, reached a tentative agreement to prolong both group-wide and voluntary cuts. Voluntary cuts amounting to 2.2 million barrels per day will be extended until the end of September 2024, after which they will be gradually phased out from October 2024 until September 2025. Additionally, the UAE will see a phased increase in its required production by 300,000 barrels per day starting January 2025. The total cuts amount to around 3.6 million barrels per day. This decision comes as the group aims to support prices amid tepid global demand growth, high interest rates, and rising U.S. production.