Skip to content Skip to Search
Skip navigation

Opec+ extends output cut into 2025 but ups UAE quota

Drilling at Adnoc's Upper Zakum Concession. The UAE's annual production quota will reach 3.5 million bpd next year from 2.9 million bpd Adnoc
Drilling at Adnoc's Upper Zakum Concession. The UAE's annual production quota will reach 3.5 million bpd next year from 2.9 million bpd

Opec+ has agreed to extend its existing crude output cuts into 2025 in a bid to shore up crude prices which are under pressure from surging North American supply.

Opec said in a statement on Sunday that it was extending voluntary cuts of 1.65 million barrels per day (bpd) for all members, announced in April 2023, until the end of December 2025.

Oil prices rose slightly on Monday in response. Brent was selling at $81.31 a barrel after a slight decline in early morning trade. The IMF puts the breakeven price for Saudi Arabia, the world’s largest exporter, at around $96 a barrel as it must finance a series of huge infrastructure and development projects.

Saudi Arabia, the UAE, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman met in Riyadh on Sunday to reinforce the precautionary measures to support the stability and balance of the oil markets.



The eight countries agreed to extend their additional voluntary cuts of 2.2 million bpd, announced in November 2023, until the end of September 2024. These cuts may then be gradually phased out on a monthly basis until the end of September 2025 to support market demand.

Norbert Rücker, head of economics at Julius Baer, said in a note that Sunday’s decision “simply acknowledges that the petro-nations have grown wary of losing market share”.

Opec+, comprising Opec and allies such as Russia, has lowered output by 5.86 million bpd.

Vandana Hari, CEO of Vandana Insights in Singapore, said that the decision to unwind cuts gradually from the end of September was “slightly bearish” for the market. But she said that the arrangement would ease strains between those who had agreed to cut voluntarily and those who were aiming for higher quotas. 

“It should go some way in ensuring continued cohesion and harmony within the group,” she said.

The UAE was a notable winner from Sunday’s meeting. It saw its production quota increased by 300,000 bpd, which will be phased gradually from January 2025 until the end of September 2025.

Opec said in May that it expects strong oil demand growth this year and next as the world economy remains resilient.

“The global oil demand growth forecast shows a further robust expansion of 1.8 million bpd year-on-year, averaging 106.3 million bpd in 2025,” said Haitham Al Ghais, the secretary general of Opec.

Latest articles

More than 24 million people visited the World Expo event at Expo City Dubai between October 2021 and March 2022

Construction begins at Expo City Dubai site

Construction has begun on the first residential properties at Expo City Dubai, part of a mixed-use master plan to repurpose the legacy site after the world fair came to a close two years ago. Master developer Expo City Dubai announced last week that it has awarded four key contracts for its Mangrove Residences. UAE-based USF […]

Saudi housing costs rose nearly 9% year on year in May

Saudi housing costs rise but inflation remains steady

Housing costs in Saudi Arabia rose nearly 9 percent year on year in May, but it was not enough to push overall inflation in the kingdom over 2 percent. The latest data from the General Authority for Statistics showed the annual inflation rate in Saudi Arabia was 1.6 percent in May, having remained at this […]

OTB Group has a presence in Dubai with its Maison Margiela store in the Dubai Mall

Chalhoub Group in venture with Italian luxury brand

Luxury distributor Chalhoub Group has entered into a joint venture with Italian fashion conglomerate OTB Group to expand the brand’s footprint in the Gulf. OTB (which stands for Only The Brave) owns the Diesel, Jil Sander, Maison Margiela, Marni and Viktor&Rolf brands, the Staff International and Brave Kid companies, and holds a stake in the […]

Arid conditions brought about by the drought in Morocco are affecting the cost of sheep

Drought pushes up sheep price for Eid in Morocco

The price for a sheep in Morocco for the annual sacrifice at Eid al-Adha has increased on average at 10 times the 2.2 percent rate of inflation. A medium-sized female sheep costs MAD4000 ($400) as opposed to MAD3000 last year. This puts it out of range for many families in the country where a high […]