BAKU, Azerbaijan, May 8. OPEC+ crude oil production is expected to grow by 0.5 mb/d from 1H2024 to 2H24, followed by an additional average increase of 0.5 mb/d in 2025, Trend reports.
The US Energy Information Administration (EIA) reports that OPEC+ producers have largely adhered to the latest round of voluntary production cuts, which are scheduled to expire at the end of June 2024.
According to EIA estimates, these cuts have removed approximately 2.2 mb/d of supply from the global oil market in 1Q2024 and have further tightened markets in 2Q2024 as additional voluntary production cuts from OPEC+ have taken effect.
Thus, the agency forecasts OPEC+ supply to reach 43.38 mb/d in 2025 (42.94 mb/d in 2024).
While many of the current OPEC+ voluntary production cuts are expected to expire starting in 2H2024, the EIA assumes that some OPEC+ members will continue to voluntarily limit production to maintain balanced global oil supplies and prevent significant increases in global oil inventories. However, the agency anticipates a gradual unwinding of these cuts, leading to an increase in OPEC+ crude oil production.
Meanwhile, in March 2024, OPEC+ members, led by Saudi Arabia and Russia, agreed to extend voluntary output cuts of 2.2 mb/d until the end of June to support the market.