American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

OPEC+ Extends Oil Output Cuts Until 2025

by admin June 5, 2024
June 5, 2024
OPEC+ Extends Oil Output Cuts Until 2025

OPEC+ announced extensions for most of its oil production cuts at a gathering this past Sunday (June 2) amid struggling oil prices brought on by subdued demand and higher inventories of the fuel.

The decision, reached at a meeting in Riyadh, Saudi Arabia, involves maintaining voluntary cuts of 1.65 million barrels per day (bpd) announced in April 2023 through to December 2025. The cuts were originally set to expire at the end of 2024.

Meanwhile, voluntary cuts of 2.2 million bpd declared in November 2023 will continue until the end of September 2024, after which they will be gradually phased out on a monthly schedule by September 2025.

Oil prices have been volatile in 2024, with Brent crude, a global benchmark, hovering around US$80 per barrel. This price level is below the fiscal breakeven point for many OPEC+ members.

The extensions are expected to address the current oversupply and support prices, which have been pressured by sluggish demand growth, particularly from China, and increasing oil inventories in developed economies.

Oil prices fall after OPEC+ announcement

Oil prices fell on Monday (June 3) following the OPEC+ announcement.

West Texas Intermediate crude for July delivery fell to US$74.27 per barrel on the news, a decrease of 3.5 percent, while Brent crude for August delivery dropped to US$78.54, down 3.2 percent.

Helima Croft, head of global commodity strategy at RBC Capital Markets, noted that some interpreted the OPEC+ statement as bearish given that the phasing out of cuts is subject to market conditions.

“They were pretty clear that this is going to be data dependent. As we get to the end of August, if the fundamental picture looks worse than what we have now, they would pause that addition,” she told CNBC.

If OPEC+ phases out the 2.2 million bpd worth of cuts as currently planned, more than 500,000 bpd will return to the market by December 2024, and 1.8 million bpd will return by June 2025.

The next OPEC+ meeting is scheduled for December 1, 2024.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
UAE the Top Destination for Smuggled African Gold Worth Billions, Study Says
next post
Siren Awarded High-Grade Lyell Tenement for a Further 5 Years

Related Posts

NZD/USD analysis amid potential Fed and RBNZ divergence

December 20, 2024

Top crypto price predictions: DigiByte, Cosmos ATOM, Pi...

April 4, 2025

SilverCrest Metals: Gold, Silver vs. Fiat — We...

May 31, 2024

AI Stocks: 9 Biggest Companies

February 10, 2024

Crude oil price analysis: will the Brent and...

October 7, 2024

Top 10 Gold-mining Companies

February 1, 2024

LME Sanctions on Russian Metal Push Copper, Nickel...

April 17, 2024

Maiden Copper Exploration Program Intersects Encouraging Mineralisation

May 15, 2024

Gold Price Tumbles on Latest US CPI Reading

March 17, 2024

DXY: Will the US dollar index crash as...

June 2, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved