Oil producing nations extend cuts of 3.66M bpd until 2025

Oil prices fell on Monday despite a move by the Oranization of Petroleum Exporting Countries and its allies-- collectively known as OPEC-PLUS to extend crude output cuts into 2025. The cartel is currently cutting outpput by 5.86 million barrels per day-- about 5.7% of global demand. That includes 3.66 million barrels per day of voluntary cuts that were set to expire at the end of 2024, extended by another year. while the group also stretched another round of cuts totaling 2.2 million bpd by three months until the end of the third quarter of this year. Eight countries have indicated plans to gradually phase out the 2.2 million bpd of additional cuts over a year from October 2024 to September 2025. Last month, oil prices lost about 6% as demand uncertainties weighed on the market. Oil prices have been pressured by fears that the US Federal Reserve will prolong high interest rates, potentially slowing economic growth and reducing oil demand.