Eight OPEC+ member states have agreed to extend their additional voluntary cuts for a month until the end of this year, according to a statement issued by the oil alliance yesterday.
The OPEC Secretariat noted in a statement published by the Saudi Press Agency (SPA) that Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and the Sultanate of Oman agreed to extend their additional voluntary oil production cuts of 2.2 million barrels per day for a month until the end of next December.
As a result of weak demand, the eight countries agreed in early September to extend their additional voluntary cuts of 2.2 million barrels per day for two months until the end of November, according to a statement issued by the alliance at the time. These cuts will then be gradually ended on a monthly basis starting from December 1, 2024. The statement reaffirmed "flexibility in temporarily suspending or reversing adjustments as necessary."
OPEC cut its forecast for global oil demand growth this year by 100,000 barrels per day in October for the third month in a row, estimating that demand would grow by 1.9 million barrels per day, down from its July forecast of 2.2 million barrels, a 13.6% cut over three months.
OPEC’s estimates of the decline in demand growth were based on the state of the economy in the United States and China, the two largest markets for crude.
OPEC’s oil production rose last month as Libya restored production that had been disrupted during a short political crisis. OPEC supplies increased by 370,000 barrels per day to 29.9 million barrels per day in October, according to a Bloomberg survey published last Friday, with the gains limited by shipment cuts in Iraq, Saudi Arabia and Iran.
The eight countries reaffirmed their collective commitment to achieving full compliance with the Declaration of Cooperation, including the additional voluntary adjustments in production that were agreed to be monitored by the Joint Ministerial Monitoring Committee during its meeting held on April 3, and full compensation for the excess quantities in production since January 2024 by September 2025, in accordance with the compensation plans submitted to the OPEC Secretariat, according to the statement issued yesterday.
