The OPEC+ alliance, led by Saudi Arabia and Russia, announced this Sunday that it is postponing for one month, until January 2025, an increase of 180,000 barrels per day (bd) of its joint oil production.
The decision, announced by the Organization of the Petroleum Exporting Countries (OPEC) in a statement, comes amid weakening demand in China and the US.
The increase – delayed to January – is part of a plan to return to the market a total of 2.2 million barrels per day of crude oil (mbd) gradually, at a monthly rate of 180,000 bd starting in January.
In this way, part of the 5.86 million barrels per day (mbd) that OPEC+ has cut since October 2022 would be reversed, which is equivalent to almost 6% of global demand, to support crude oil prices.
The delay was decided by Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Omanthe countries that plan to open the taps starting in January.
The plan to increase extraction monthly was approved in June but its application has been postponed due to the weakness of prices, since an increase in production could sink them further.
The price of OPEC crude oil closed the week at $71.27.
The rest of the cut applied, 3.66 mbd, would remain in force at least until the end of 2025.
An OPEC+ ministerial conference is scheduled for December 1 at which the situation will be evaluated.
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