OPEC+ is working on a complex deal to be agreed at its meeting on Sunday that will allow the group to extend some of its deep oil production cuts into 2025, according to three sources familiar with the discussions. The Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and its allies led by Russia, known as OPEC+, is currently cutting output by a total of 5.86 million barrels per day (bpd), equal to about 5.7% of global demand.
The deal on Sunday could include extending some or all of the cuts of 3.66 million bpd into 2025 and some or all of the voluntary cuts of 2.2 million bpd into the third or fourth quarter of 2024. “A decision for 2025 is possible,” said one of the sources. The extension of some cuts into 2025 will likely be made conditional on OPEC+ agreeing new individual member output capacity figures later in 2024, two of the sources said.
The OPEC+ meeting coincides with a sale by Saudi Arabia of a new stake in state oil giant Aramco, which could raise as much as $13.1 billion to help fund Crown Prince Mohammed bin Salman’s plan to diversify the economy.