The Conversation (0)
- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Top Stocks
Top Resource Stocks
Top Tech Stocks
Top Life Science Stocks
Trending
Trending Articles
Trending Press Releases
Trending Companies
Trending Reports
Resource
Popular Lists
Investing Ideas
Outlook Reports
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
Investing Guides
Tech
Popular Lists
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
Investing Ideas
Outlook Reports
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
Investing Guides
Life Science
Popular Lists
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
Outlook Reports
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Investing Guides
Oil and Gas Investing
OPEC+ Extends Oil Output Cuts Until 2025
Jun. 03, 2024 09:20AM PST
Depending on market conditions, OPEC+ may start phasing out voluntary cuts of 2.2 million bpd starting in October of this year.
Zbynek Burival / Unsplash
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.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
From Your Site Articles
- How to Invest in Oil ›
- Oil Price and Inflation: What’s the Correlation? ›
- Top 10 Oil-producing Countries (Updated 2024) ›
Related Articles Around the Web
https://x.com/giannliguid
https://www.linkedin.com/in/giannliguid/
The Beginner’s Guide to Investing in Oil and Gas
Ready to invest in oil and gas? Our beginner's guide makes it simple to get started.
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Oil and Gas Sector
Your Newsletter Preferences
Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics.
When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
Giann Liguid is a graduate of Ateneo De Manila University with an AB in Interdisciplinary Studies. With a diverse writing background, Giann has written content for the security, food and business industries. He also has expertise in both the public and private sectors, having worked in the government specializing in local government units and administrative dynamics. When he is not chasing the next market headline, Giann can most likely be found thrift shopping for his dogs.
Learn about our editorial policies.