FX.co ★ Voluntary oil production cuts extended by OPEC+ until end of 2025

The oil market is on the rise. The reason for the uptrend is the extension of the current oil production quotas for OPEC and its allies. The countries participating in the pact and independent oil exporters have extended the valid quotas until the end of 2025.

The cartel and its allies concluded that previous oil output rates were extended from January 1, 2025, to December 31, 2025.

On the ground of this resolution, the permitted oil production rates for Saudi Arabia and Russia for the next year remain the same, amounting to 10.478 million barrels per day and 9.949 million bpd, respectively. For the United Arab Emirates (UAE), the utmost production rate was pumped up by 300,000 bpd, reaching 3.519 million bpd.

Analysts had expected that at the summit on June 2, oil ministers of OPEC countries would prolong the deal with the current quota rates for the next three months within the framework of voluntary production cuts. Russia and Saudi Arabia have joined this agreement.

In April 2024, the OPEC+ Monitoring Committee welcomed Moscow's statement that its voluntary production cut in the second quarter of this year would be based on production, not exports.

Later, the Russian government noted that OPEC+ meeting participants decided to gradually scale up the voluntary production cut starting in October 2024. Furthermore, they will extend the assessment period of the deal compliance until the end of November 2025.

OPEC and its allies will hold ministerial-level meetings every six months. The next event is scheduled for December 1, 2024.

Currently, the total oil production volume fixed for all OPEC+ countries for this year is 39.7 million bpd. Meanwhile, the aggregate volume of voluntary production cuts is 2.2 million bpd.