VIENNA: Several Opec+ countries, including Saudi Arabia and Russia, agreed on Thursday to extend oil supply cuts for three months through March to avoid a sharp drop in prices in a global market awash in crude.
The decision had been widely expected, though dissension that caused the meeting to be delayed by a few days had created some doubts that the oil cartel would maintain the cuts.
Eight Opec+ countries will extend their “voluntary adjustments” of 2.2 million barrels per day until the end of March, the Vienna-based group said in a statement following a virtual meeting.
After that, those cuts “will be gradually phased out” on a monthly basis until the end of September 2026, the group said, adding this is “subject to market conditions”.
Without a new agreement, the eight countries were set to begin increasing production beginning in January to gradually return it to 2023 levels.
Published in Dawn, December 6th, 2024
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