Global oil prices are climbing after OPEC+ announced plans to gradually ease voluntary production cuts starting in October 2024, reports Baltimore Chronicle with reference to Reuters.
During an online meeting on June 2, the alliance countries agreed to extend the current voluntary reductions of 2.2 million barrels per day until September. From October to December 2024, these restrictions will be gradually rolled back. The market interpreted this move as a sign of OPEC+’s confidence in demand stabilization.
Following the announcement, Brent crude futures rose to $81.63 per barrel, while WTI increased to $77.19. Despite the initial uptick, the market remained cautious due to the broader supply outlook, including expanding production from the U.S. and other non-OPEC+ producers.
Separately, OPEC+ approved production plans for 2025. Saudi Arabia’s baseline was lowered from 10.5 million to 9 million barrels per day, while the UAE’s was raised to 3.5 million. These adjustments aim to ensure a more equitable distribution of quotas among alliance members, taking into account technical capacity and economic interests.
Analysts note the complexity of balancing price stability with preserving market share. OPEC+ is working to avoid oversupply while retaining flexibility to respond to shifts in global demand.
Earlier we wrote that Russia increases oil and gas revenues as EU remains top buyer.