OPEC+ extends voluntary production cut, restores oil market balance

Saudi oil experts predicted, Sunday, the extension of the voluntary production cut during the OPEC+ Joint Ministerial Monitoring Committee joined by Kuwait Deputy Prime Minister and Minister of Oil Dr. Imad Al-Atiqi in Riyadh, Saudi Arabia. In a statement to KUNA, Saudi oil expert Dr. Fahad bin Juma'a said that he expected the oil production cut to last until 2025, attributing the cut to the current weak state of oil markets and prices. He explained the production cut extension would not be enough to balance oil markets, stating that there must be deeper awareness in regards to voluntary oil production cuts. There are factors, Dr. Juma'a added, that led to the oil markets' weakness such as the increase in oil production by countries not inclusive to OPEC-the United States-which produces 13.1 million barrels per day, coupled with the decreased global demand for oil. In a similar statement to KUNA, Saudi energy and mining economics analyst in energy and mining economics Aqeel Al-Enezi said that a possible a greement between OPEC+ countries would occur, lowering oil production until the end of 2024, and ensuring the balance in oil markets. OPEC+ countries and other oil-producing countries, Al-Enezi explained, had been monitored to produce oil excessively, impacting global economic growth, and industry sectors, especially during last winter's decline in fossil fuel consumption. OPEC+ Group is attempting to revive the trepid oil market growth and demand through increasing interest rates and the increase in US production competition, in addition to the decreased oil demand from China, Juma'a added. The OPEC+ virtual meeting took place Sunday in Riyadh joined by Kuwait Oil Minister Dr. Al-Atiqi and Saudi Oil Minister Abdulaziz bin Salman. OPEC+ members include members of OPEC and other non-OPEC members such as Russia. OPEC+ members are currently reducing production in total by 5.86 million barrels per day, the equivalent of about 5.7 percent of global demand. Source: Kuwait News Agency