OPEC+ extends oil production cuts into 2025
What specific oil production cuts has OPEC+ decided to extend into 2025?
OPEC+ has decided to extend most of its deep oil output cuts well into 2025. This includes a voluntary production cut of 2.2 million barrels of crude oil per day. The cuts, which were first agreed upon in December, were initially due to expire at the end of June. The decision to extend the cuts aims to shore up the market amid tepid demand growth and high interest rates3.
When are the phased reductions of the voluntary production cuts expected to begin?
The phased reductions of the voluntary production cuts by OPEC+ are expected to begin in the fourth quarter of 2024.
What are the expected market conditions for oil demand going into 2025 according to the report?
According to the report, global oil demand is expected to rise by 1.85 million barrels per day in 2025, reaching 106.21 million barrels per day. This growth is driven by non-OECD countries, with China being a significant contributor. However, the pace of growth is slower compared to previous years, as the post-Covid rebound has run its course, and factors such as vehicle efficiencies and an expanding EV fleet act as drags on oil demand. The report also highlights that non-OPEC+ countries, led by the United States, will continue to drive world oil supply growth through 2025.