In a strategic move to stabilize the global oil market, eight member countries of the OPEC+ group announced on Sunday the extension of their voluntary oil output cuts by an additional month. This decision pushes the production reductions through the end of December 2024, aiming to counteract the ongoing decline in oil prices.
The OPEC+ alliance, comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies, includes Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman. These nations have collectively agreed to maintain their November 2023 voluntary production adjustments of 2.2 million barrels per day.
In their statement, OPEC emphasized the members' commitment to \"achieve full conformity\" with their production targets. Additionally, they pledged to address any overproduction issues by September 2025, ensuring a balanced and stable oil market.
This extension follows a similar decision made in September, when the same eight countries prolonged their voluntary production cuts by two months beyond the original September deadline. The continued reduction in oil supply comes amid concerns over weakening global demand, which has been contributing to the downward trend in oil prices in recent weeks.
Market analysts suggest that these coordinated efforts by OPEC+ are crucial in managing the delicate balance between supply and demand, especially in a period marked by economic uncertainties and fluctuating energy needs worldwide.
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8 OPEC+ members extend voluntary oil output cuts by one month
cgtn.com
