Saudi Arabia and allied oil producing countries have decided to postpone a plan to gradually increase oil output until the end of the year, extending their output cuts by one month. This decision was announced on Sunday, with no specific reason provided for the extension.
Back in June, OPEC had initially agreed to extend voluntary cuts of 2.2 million barrels a day until September, with a plan to gradually reduce the cuts month by month until they are completely eliminated by September 2025. However, these cuts were later extended until November. Now, the group, which includes countries like Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, has further extended the cuts by one more month until the end of December.
The announcement regarding this extension was made on the website for the OPEC+ alliance. The decision to prolong the output cuts comes amidst a backdrop of declining oil prices due to weak global demand overshadowing concerns about a potential escalation of conflict in the Middle East.
