Ahmad Ghaddar, Alex Lawler and Maha El Dahan of Reuters report that the members of OPEC+ agreed on Sunday to extend most of their deep oil output cuts well into 2025 as the group seeks to shore up the market amid tepid demand growth, high interest rates and rising U.S. production. They write:
Brent crude oil prices have been trading near $80 per barrel in recent days, below what many OPEC+ members need to balance their budgets. Worries over slow demand growth in top oil importer China have weighed on prices alongside rising oil stocks in developed economies.
The Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, have made a series of deep output cuts since late 2022.OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd), or about 5.7% of global demand. […]
Saudi Arabia’s government has filed papers to sell a new stake in state oil giant Aramco that could raise as much as $13.1 billion, a landmark deal to help fund Crown Prince Mohammed bin Salman’s plan to diversify the economy.
OPEC+ will hold its next meeting on Dec. 1, 2024.
