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New York (CNN) — The Organization of the Petroleum Exporting Countries and its allies — the coalition of the world’s top oil producers known as OPEC+ — said Thursday that it is extending oil production cuts once again as crude and fuel prices continue to slump.
The countries making up the organization will extend their production cuts of 2.2 million barrels per day through November and plans to phase out those voluntary cuts beginning in December until November 2025, OPEC+ said in a Thursday release.
This isn’t the first time OPEC+ has extended output cuts in a bid to boost crude prices. The group in June lengthened the 2.2 million barrels per day cut through the end of September. That same month, OPEC+ extended a cut of 1.65 million barrels per day announced in April 2023 until the end of 2025.
Oil prices rose initially but settled slightly lower Thursday. West Texas Intermediate crude futures, the US benchmark, settled at $69.15 barrel. Brent crude futures, the international benchmark, settled at $72.69 a barrel.
Oil prices have declined this year despite continued output cuts and ongoing geopolitical tension in the Middle East. Concerns about waning demand in China, the world’s largest oil importer, have helped keep a lid on prices, as has record output from the United States. US oil fell below $70 a barrel Wednesday for the first time since December 12, 2023.
OPEC+ has restrained output for about two years in an effort to prevent a huge supply surplus that could weigh on prices and hurt the oil-dependent economies of its member states.
In June, the International Energy Agency said that a glut of oil supply could weaken the sway OPEC+ has over oil prices. Global oil supply could outstrip demand by a “staggering” 8 million barrels per day by 2023, according to forecasts published by the agency in its medium-term oil market report.
The agency said in July that it expects global oil demand to grow by 970,000 barrels per day in 2024, up slightly from its 960,000 barrels per day forecast the prior month. In May, the IEA had projected demand to grow by 1.1 million barrels per day.
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