OLOXF - OPEC+ Extends Cuts

2024-06-03 15:10:00 ET

Summary

• OPEC+ members met over the weekend to discuss production policy for the remainder of this year and 2025.
• ICE Brent is down more than 10% from its April highs, despite OPEC+ withholding a significant amount of oil from the market.
• In theory, the unwinding of additional voluntary supply cuts and an increase in the UAE production target means that from October 2024 through until the end of 2025, OPEC+ is planning to bring 2.5m b/d of supply back onto the market.

By Warren Patterson

What did OPEC+ agree?

OPEC+ members met over the weekend to discuss production policy for the remainder of this year and 2025. It was a hybrid meeting, with the wider group attending by video conference, while members making additional voluntary cuts met in person in Riyadh. The meeting coincided with Aramco’s ( ARMCO ) $12bn secondary share offering on Sunday, which sold out within hours....

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