BAKU, Azerbaijan, June 13. The US Energy Information Administration (EIA) projects that OPEC+ liquid fuels production will decrease by 1.2 mb/d in 2024 to 42.59 mb/d, Trend reports.
The agency anticipates that OPEC+ will largely adhere to the production targets announced on June 2. These targets extend the additional voluntary production cuts by countries such as Saudi Arabia and Russia, initially set to expire at the end of June 2024, through September 2024.
Starting in October 2024, OPEC+ member countries plan to gradually phase out their production cuts on a monthly basis, continuing this process until the end of September 2025. Additionally, the round of production cuts announced by OPEC+ participants in April 2023, which were set to expire at the end of 2024, have been extended through the end of 2025.
Given the extension of these production cuts, the EIA expects OPEC+ crude oil production to follow the new targets until early 2025. At that point, it is anticipated that some OPEC+ producers will maintain production levels below the targets to limit global oil inventory builds.
However, as the gradual phaseout of the first round of OPEC+ voluntary production cuts unfolds throughout the year, OPEC+ production is expected to increase by 0.7 mb/d in 2025 to 43.31 mb/d.