OPEC+ (Organization of Petroleum Exporting Countries and Allies) agreed to extend cuts in oil production until 2025 and set a schedule for the gradual reduction starting this year. The agreement was signed on Sunday (June 3, 2024) in Riyadh, the capital of Saudi Arabia. Read the full joint statement (PDF – 20 MB).

The group formed by Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman has reduced oil production since 2022 to maintain the price of oil. commodity. Today, the cut amounts to 5.86 million barrels per day, equivalent to around 5.7% of global demand.

The increase in inventory, slower growth in consumption in China – the largest oil market in the world – and high interest rates are some of the factors that helped keep the price of Brent at US$80 per barrel. The value, however, is below what some countries in the group intend.

On Friday (May 31), Brent futures closed at US$81.62 per barrel, a drop of 7.1% in the month.

The measures announced on Sunday (June 2) will be implemented gradually. Read what they are:

  • extend cuts of 3.66 million barrels per day until the end of 2025;
  • extend the cuts of 2.2 million barrels per day for 3 months, until the end of September 2024;
  • From October 2024, cuts of 2.2 million barrels per day will be gradually reduced over 1 year.

We hope that interest rates will fall and that there will be a better trajectory when it comes to economic growth, not pockets of growth here and there,” Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said in an interview with journalists.

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Source: https://www.poder360.com.br/poder-energia/opep-estende-cortes-na-producao-de-petroleo-ate-o-fim-de-2025/

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