OPEC+ Extends Deep Oil Output Cuts | 04 Jun 2024
OPEC+ decided to extend significant oil output cuts through 2025, surpassing market expectations to support prices amid sluggish demand, high interest rates, and increasing US production.
- According to its official website, the Organization of the Petroleum Exporting Countries (OPEC), established at the 1960 Baghdad Conference, is a permanent intergovernmental organisation with 12 member countries.
- Its headquarters is in the Austrian capital Vienna.
- OPEC member states produce about 40% of the world’s oil, and their exports comprise around 60% of the global petroleum trade.
- Before OPEC was formed, the international oil market was dominated by the “seven sisters” group of multinational energy companies.
- In 2016, OPEC and 10 other oil-producing countries, including Russia formed OPEC+ in response to plummeting oil prices due to increased U.S. shale oil output.