CESCE, Country Risk
The Organization of the Petroleum Exporting Countries and its allies (called OPEC+) agreed, at the meeting held on June 2 in Riyadh, to extend, with nuances, the cuts in crude oil production.
![[Img # 57689]](https://empresaexterior.com/upload/images/06_2024/4907_petroleo.jpg)
The voluntary adjustment of 2,2 million barrels per day (mill.b/d) approved in November 2023 will be extended until next September.
From then on, the cartel will gradually eliminate this measure over the next twelve months. For their part, the mandatory cuts of 3,66 mill.b/d that expired at the end of 2024 will be extended until December 2025, with the exception of United Arab Emirates (UAE).
Specifically, it was agreed to allow the Arab country to gradually increase its quota by 300.000 b/day over the next year. It is worth remembering that in recent years the UAE has been against the strategy of keeping the market tense through adjustments in production. The divergences reached such a point that it even threatened to withdraw from the organization in mid-2023. However, the production of OPEC+ as a whole at the end of 2025 will increase – if all countries comply with the established quota system – at 2,5 mill.b/d compared to current values, a flexibility that has exceeded the expectations of a good part of the market.
Source: CESCE
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