OPEC+ to prolong oil cuts through ’24

OPEC+ is likely to extend voluntary oil cuts into the third and possibly fourth quarters of 2024, with some cuts potentially extending into 2025, according to two sources ahead of the group’s Sunday meeting cited by Reuters.

Since late 2022, OPEC+ has made significant output cuts due to rising non-member production and demand concerns. Currently, OPEC+ members are cutting output by 5.86 million barrels per day (bpd), or about 5.7 per cent of global demand.

This includes 3.66 million bpd cuts valid through the end of 2024 and 2.2 million bpd voluntary cuts expiring in June. Oil prices remain near $80 per barrel, below what many OPEC+ members need to balance their budgets, prompting expectations of extended cuts to stabilise supply.