OPEC Seen Prolonging Cuts into 2025, Two Sources Say

OPEC Seen Prolonging Cuts into 2025, Two Sources Say

The Organization of the Petroleum Exporting Countries (OPEC) is expected to prolong its oil production cuts into 2025, according to two sources familiar with the matter. The decision is seen as a move to maintain a balance between supply and demand in the global oil market.

OPEC, which is responsible for around 40% of the world's oil production, has been reducing its output since the start of the year to support prices and balance the market. The group's production cuts have been in place since January 2020, when the pandemic led to a sharp decline in global demand.

The sources told Reuters that OPEC is likely to extend the cuts until the end of 2025, citing concerns about a potential slowdown in global economic growth and a potential surge in oil supply from non-OPEC producers.

The decision to prolong the cuts is also seen as a move to maintain OPEC's influence on the global oil market. The group has been trying to maintain its market share in recent years, despite the rise of US shale oil producers.

The prolonged cuts are likely to have a significant impact on the global oil market, particularly for countries that rely heavily on oil imports. The move is also expected to have a significant impact on the global economy, as it could lead to higher prices for fuel and other commodities.

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Leave a comment below and let us know your thoughts on OPEC's decision. Do you think the prolonged cuts will have a significant impact on the global oil market? How do you think this will affect countries that rely heavily on oil imports?

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Conclusion

OPEC is expected to prolong its oil production cuts into 2025, according to two sources familiar with the matter. The decision is seen as a move to maintain a balance between supply and demand in the global oil market. The prolonged cuts are likely to have a significant impact on the global oil market, particularly for countries that rely heavily on oil imports. The move is also expected to have a significant impact on the global economy, as it could lead to higher prices for fuel and other commodities.