OPEC+ agrees to extend oil output reduction by one year

A group of major oil producing nations, known as OPEC Plus, has agreed to extend its current output reduction framework by one year until the end of 2025.

The Organization of the Petroleum Exporting Countries and other major oil producing countries such as Russia, held a ministerial meeting online on Sunday.

In a statement issued after the meeting, the group said it agreed to prolong the current cuts that were due to expire at the end of this year. This means that a reduction of 3.66 million barrels per day will continue into 2025.

Eight members, including Saudi Arabia and Iraq, will also extend voluntary cuts of 2.2 million barrels per day by three months until the end of September.

They say they will gradually phase out the cuts from October, while monitoring trends in the crude oil market.

Crude oil futures rose in April on concerns that the situation in the Middle East will become more strained due to rising tensions between Israel and Iran. The futures are currently on the decline from that level.

OPEC Plus is apparently seeking to prop up oil prices by continuing output reduction in light of growing uncertainty over prospects for the Chinese economy, and other factors.