Reuters: OPEC plus economy likely to extend oil production cuts

Although the alliance meeting will be held online tomorrow on Sunday to decide on oil production policy, many of the alliance’s ministers are expected to travel to the Saudi capital Riyadh to attend, two OPEC+ sources said. .

The OPEC Plus alliance includes the Organization of the Petroleum Exporting Countries (OPEC) and other nations, including Russia, and will decide its production policy for 2024 and next year.

The alliance is expected to discuss a complex deal that could extend the period of oil production cuts until 2025, the sources said.

A number of OPEC+ ministers have been invited to Riyadh, sources said yesterday.

OPEC Plus members are currently cutting total output by 5.86 million barrels per day, or the equivalent of 5.7% of global demand.

Some sources indicate that tomorrow’s meeting will include countries voluntarily cutting supply by 2.2 million barrels per day as part of the alliance’s broader efforts aimed at curbing supply, balancing the market and supporting crude prices.

These additional cuts will expire this month.

Countries implementing voluntary reductions include Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia and the United Arab Emirates.

Productivity of Member States

OPEC Plus has made a series of cuts since late 2022 amid rising production from non-member countries such as the United States and concerns about demand in light of rising interest rates.

Tomorrow’s meeting to decide production policy was originally planned to be held in person at OPEC headquarters in Vienna, but it was decided to go online last week.

The session is expected to start tomorrow (09:00 GMT).

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In addition to production cuts, OPEC Plus member countries are scheduled to discuss production capacity, which has long sparked controversy.

Estimating production capacities helps the OPEC+ alliance find baseline production numbers.

Oil prices fall

Oil prices fell on Friday, posting weekly losses, as investors focused on the OPEC Plus meeting.

Brent crude oil for August delivery fell 0.6% to $81.37 a barrel, while futures fell. For US West Texas Intermediate crude oil Delivery next July: 1% to $77.18.

Brent crude fell 0.6% on the week, while West Texas Intermediate crude lost 1%.

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