Oil prices stabilize after OPEC+ extends production cuts

Oil prices stabilized after fluctuating up and down, today, Monday, following the OPEC+ alliance's move to extend the significant reduction in oil production until 2025. Marginally, Brent crude futures for August delivery fell by 0.07 cents, or 0.09%, to $81.04 per barrel at 04:26 GMT, and US West Texas Intermediate crude futures for July delivery fell by 0.03 cents, or 0.04%, to $76.96. The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and allies led by Russia, is currently reducing production by a total of 5.86 million barrels per day, which represents about 5.7% of global demand. The cuts include 3.66 million barrels per day that were scheduled to end by the end of 2024, and voluntary cuts from eight member states of 2.2 million barrels per day that expire at the end of June of this year. But the coalition agreed yesterday, Sunday, to extend the cuts amounting to 3.66 million barrels per day for a year until the end of 2025, and to extend the voluntary cuts of 2.2 million barrels per day for a period of three months until the end of September 2024. OPEC+ will gradually cancel the voluntary cuts amounting to 2.2 million barrels per day over the course of a year, starting from October 2024 until September 2025. Analysts expected that OPEC+ would extend the voluntary cuts for a few months due to the decline in oil prices and the slowdown in demand. Source: National Iraqi News Agency