The decrease in oil demand by China and the United States is said to be one of the main reasons that has led the Organization of the Petroleum Exporting Countries (OPEC) to announce that it is postponing an increase in production of 180,000 barrels per day until January 2025.

According to a statement from OPEC+, published this Sunday, November 3, the joint oil production that was delayed until January of next year “is part of a plan to gradually return a total of 2.2 million barrels of crude oil per day (mbd) to the market.”

The main objective of this measure would be to reconvert part of the “5.86 mbd that OPEC+ has cut since October 2022,” which represents approximately 6% of global demand, to support crude oil prices.

Representatives from Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman made the decision to postpone the increase in production that was initially approved last June.

According to the statement, the rest of the applied cut, which corresponds to 3.66 mbd, would come into effect at the end of 2025.

In any case, OPEC+ is expected to address the situation at its next ministerial conference, scheduled for December 1.

M.Pino

Source: expansion

(Reference image source: Moritz Kindler in Unsplash)

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