OPEC, along with allied oil-producing countries, announced on Sunday that they will extend their oil output cuts by one month, postponing a plan to gradually increase oil output until the end of December. This decision was made without providing a specific reason and comes just ahead of the U.S. presidential election on Tuesday.
In June, OPEC had previously stated that 2.2 million barrels a day in voluntary cuts would be extended until September, with the intention of gradually reducing these cuts month by month until they are completely eliminated by September 2025. Later, OPEC extended the cuts until November. On Sunday, the group, which includes major oil producers such as Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, decided to extend the cuts once more, this time until the end of December. The announcement was published on the OPEC+ alliance’s official website.
Currently, oil prices are experiencing a downward trend as weak global demand outweighs the risks associated with a wider conflict in the Mideast.
