OPEC+ confirmed on Sunday that it will prolong its significant oil supply cutbacks well into 2025. The decision comes as a coalition of oil-producing nations seeks to stabilise the market in the face of slow demand growth, rising interest rates, and increased competition from US producers. Brent crude oil prices are currently around $80 per barrel, which is insufficient to balance many OPEC+ nations' budgets.<o:p></o:p>

Deep cuts to persist amid market pressures<o:p></o:p>

The Organisation of Petroleum Exporting Countries and its allies, led by Russia, known collectively as OPEC+, are sustaining severe output cutbacks implemented in late 2022. The group, which accounts for a significant portion of world oil supply, is now reducing output by 5.86 million barrels per day (bpd), which equates to approximately 5.7 per cent of total demand. These cutbacks include 3.66 million bpd, which is expected to expire at the end of 2024, as well as an extra 2.2 million bpd of voluntary reduction by eight members, which will expire in June 2024.<o:p></o:p>

OPEC+ has resolved to extend the 3.66 million bpd cuts until the end of 2025, as well as the voluntary reduction of 2.2 million bpd until September 2024. The latter will be phased out progressively between October 2024 and September 2025.<o:p></o:p>

Challenges and strategic adjustments<o:p></o:p>

Saudi Energy Minister Prince Abdulaziz bin Salman emphasised the importance of patience, saying, "We are waiting for interest rates to fall and a better path for economic growth...not pockets of growth here and there." OPEC expects demand for its crude to average 43.65 million bpd in the second half of 2024, implying a stock depletion if production maintains at the April rate of 41.02 million bpd. However, this drawdown will decrease as voluntary reductions are phased out beginning in October.<o:p></o:p>

The International Energy Agency (IEA), which represents major consumers, predicts that demand for OPEC+ oil will fall to 41.9 million barrels per day in 2024. According to Amrita Sen, co-founder of Energy Aspects, "The deal should allay market fears of OPEC+ adding back barrels at a time when demand concerns are still rife."<o:p></o:p>

Negotiations and new production targets<o:p></o:p>

In an unexpected turn of events, OPEC+ postponed negotiations on each member's specific capacity targets until November 2025. The UAE, which has lobbied for a greater production quota, has achieved a new objective that allows it to increase output by 0.3 million bpd from its existing 2.9 million bpd.<o:p></o:p>

The deal's complexity necessitated substantial preparation, with Prince Abdulaziz conducting conversations behind the scenes. Even though most discussions are held online, certain key ministers convened in Riyadh on Sunday. Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the United Arab Emirates are among the nations making voluntary reductions.<o:p></o:p>

Looking Ahead<o:p></o:p>

This accord, reached in less than four hours of negotiations on Sunday, demonstrates the group's unity and strategic acumen. Prince Abdulaziz's leadership was critical in securing this agreement, which attempts to calm markets and maintain stability in the face of global economic uncertainty. The next OPEC+ meeting is set for December 1, 2024.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

OPEC+ confirmed on Sunday that it will prolong its significant oil supply cutbacks well into 2025. The decision comes as a coalition of oil-producing nations seeks to stabilise the market in the face of slow demand growth, rising interest rates, and increased competition from US producers.

OPEC+ confirmed on Sunday that it will prolong its significant oil supply cutbacks well into 2025. The decision comes as a coalition of oil-producing nations seeks to stabilise the market in the face of slow demand growth, rising interest rates, and increased competition from US producers. Brent crude oil prices are currently around $80 per barrel, which is insufficient to balance many OPEC+ nations' budgets. Deep cuts to persist amid market pressures The Organisation of Petroleum Exporting Countries and its allies, led by Russia, known collectively as OPEC+, are sustaining severe output cutbacks implemented in late 2022. The group, which accounts for a significant portion of world oil supply, is now reducing output by 5.86 million barrels per day (bpd), which equates to approximately 5.7 per cent of total demand. These cutbacks include 3.66 million bpd, which is expected to expire at the end of 2024, as well as an extra 2.2 million bpd of voluntary reduction by eight members, which will expire in June 2024. OPEC+ has resolved to extend the 3.66 million bpd cuts until the end of 2025, as well as the voluntary reduction of 2.2 million bpd until September 2024. The latter will be phased out progressively between October 2024 and September 2025. Challenges and strategic adjustments Saudi Energy Minister Prince Abdulaziz bin Salman emphasised the importance of patience, saying, "We are waiting for interest rates to fall and a better path for economic growth...not pockets of growth here and there." OPEC expects demand for its crude to average 43.65 million bpd in the second half of 2024, implying a stock depletion if production maintains at the April rate of 41.02 million bpd. However, this drawdown will decrease as voluntary reductions are phased out beginning in October. The International Energy Agency (IEA), which represents major consumers, predicts that demand for OPEC+ oil will fall to 41.9 million barrels per day in 2024. According to Amrita Sen, co-founder of Energy Aspects, "The deal should allay market fears of OPEC+ adding back barrels at a time when demand concerns are still rife." Negotiations and new production targets In an unexpected turn of events, OPEC+ postponed negotiations on each member's specific capacity targets until November 2025. The UAE, which has lobbied for a greater production quota, has achieved a new objective that allows it to increase output by 0.3 million bpd from its existing 2.9 million bpd. The deal's complexity necessitated substantial preparation, with Prince Abdulaziz conducting conversations behind the scenes. Even though most discussions are held online, certain key ministers convened in Riyadh on Sunday. Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the United Arab Emirates are among the nations making voluntary reductions. Looking Ahead This accord, reached in less than four hours of negotiations on Sunday, demonstrates the group's unity and strategic acumen. Prince Abdulaziz's leadership was critical in securing this agreement, which attempts to calm markets and maintain stability in the face of global economic uncertainty. The next OPEC+ meeting is set for December 1, 2024. (With inputs from Reuters)

OPEC+ extends deep oil output cuts into 2025 amid market uncertainties

The Biden administration is reportedly planning to delay military aid to Saudi Arabia to punish the Gulf country for leading OPEC’s decision to cut oil production going against the request.

According to NBC, which has quoted two US officials, the administration might delay shipments of advanced Patriot MIM-104E guided ballistic missiles, among other arms and ammunition to Saudi Arabia.

Saudi has Patriot launch systems and needs missiles to defend against the Houthi rebels in Yemen. It had inked a deal with the US to purchase 300 missiles from it.

While some military officials have supported the retributive move, there are others who want to keep the oil production cuts a separate issue, said NBC report citing sources.

Apart from that, the other methods that might be employed by the US to punish the Saudi regime include excluding them from any upcoming military exercises and engagements like regional meetings or conferences, the officials said.

Though nothing has been decided yet, the Biden administration might drop the idea if the Saudis increase the production in the upcoming December OPEC meeting, the officials added.

The ties between the US and Saudi soured after the Gulf nation, apart from Russia, influenced the OPEC group to cut oil production by two million barrels a day, contrary to the requests by Joe Biden.

The move incensed the White House which has been struggling to control inflation and reduce gas prices, which have&nbsp;been at new highs since the Russia-Ukraine war broke out in February this year.

Earlier this month, Biden while speaking to CNN said, "There's going to be some consequences for what they've done with Russia."

(With inputs from agencies)

WATCH WION LIVE HERE: 

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The Biden administration is reportedly planning to delay military aid to Saudi Arabia to punish the Gulf country for leading OPEC’s decision to cut oil production going against the request.

The Biden administration is reportedly planning to delay military aid to Saudi Arabia to punish the Gulf country for leading OPEC’s decision to cut oil production going against the request. According to NBC, which has quoted two US officials, the administration might delay shipments of advanced Patriot MIM-104E guided ballistic missiles, among other arms and ammunition to Saudi Arabia. Saudi has Patriot launch systems and needs missiles to defend against the Houthi rebels in Yemen. It had inked a deal with the US to purchase 300 missiles from it. While some military officials have supported the retributive move, there are others who want to keep the oil production cuts a separate issue, said NBC report citing sources. Apart from that, the other methods that might be employed by the US to punish the Saudi regime include excluding them from any upcoming military exercises and engagements like regional meetings or conferences, the officials said. Though nothing has been decided yet, the Biden administration might drop the idea if the Saudis increase the production in the upcoming December OPEC meeting, the officials added. The ties between the US and Saudi soured after the Gulf nation, apart from Russia, influenced the OPEC group to cut oil production by two million barrels a day, contrary to the requests by Joe Biden. The move incensed the White House which has been struggling to control inflation and reduce gas prices, which have been at new highs since the Russia-Ukraine war broke out in February this year. Earlier this month, Biden while speaking to CNN said, "There's going to be some consequences for what they've done with Russia." (With inputs from agencies) WATCH WION LIVE HERE:

Biden looking to ‘punish’ Saudi for oil output cut decision by delaying military supplies: Report

A senior Democratic lawmaker has raised concerns that Saudi Arabia might share sensitive US defense technology with Russia. This comes after the kingdom’s recent decision to side with Moscow over the interests of the US. In an interview with Guardian, Richard Blumenthal, a member of the Senate armed services committee, said he would “dig deeper into the risk” in discussions with the Pentagon.

The Senate armed services committee had proposed a one-year freeze on weapons sales to Saudi following Opec+’s decision to cut oil production.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/us-looking-for-alternatives-after-opec-disappointment-may-ease-venezuela-sanctions-523120">US looking for 'alternatives' after OPEC 'disappointment'</a>

“I want some reassurances that they are on top of it and if there are risks, I want to determine what can be done to mitigate those risks immediately,” Blumenthal said.

Washington isn't happy with Opec+’s decision to begin cutting oil production next month by two million barrels a day. The Saudi monarchy and Democrats in Washington seem to be at loggerheads over the matter. The decision sent indications that Saudi is siding with Russia in the Ukraine war, besides hitting the Biden administration hard before next month's mid-term elections. The reduction in oil output will lead to an increase in gas prices.

Biden even warned that Saudi would face “consequences” for the move. On Sunday, the White House national security adviser, Jake Sullivan, said Biden will “methodically” work towards re-evaluating the relationship with Saudi Arabia. However, changes to security assistance to the major oil producer are likely.

Also Read |&nbsp;<a href="https://www.wionews.com/world/opec-decision-of-output-cut-not-aimed-against-us-says-saudi-arabia-525212">OPEC decision of output cut not aimed against US, says Saudi Arabia</a>

Blumenthal informed that a primary area of concern was to make sure that Russia doesn't benefit from the sensitive technology that has been shared with US partners in Riyadh.

“We are going to be consulting with the Pentagon, speaking to them very frankly about their assessment of the risk in the transfer of technology in advanced weapons systems made already,” he said. “I am not leaping to any conclusions but it needs to be a consideration that is heightened.”

While the Republicans haven't said much on the matter till now, Blumenthal expects bipartisan support for measures to curb weapons sales and the issue is likely to be taken up formally next month.

(With inputs from agencies)

&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

A senior Democratic lawmaker has raised concerns that Saudi Arabia might share sensitive US defense technology with Russia. This comes after the kingdom’s recent decision to side with Moscow over the interests of the US.

A senior Democratic lawmaker has raised concerns that Saudi Arabia might share sensitive US defense technology with Russia. This comes after the kingdom’s recent decision to side with Moscow over the interests of the US. In an interview with Guardian, Richard Blumenthal, a member of the Senate armed services committee, said he would “dig deeper into the risk” in discussions with the Pentagon. The Senate armed services committee had proposed a one-year freeze on weapons sales to Saudi following Opec+’s decision to cut oil production. Also Read | US looking for 'alternatives' after OPEC 'disappointment' “I want some reassurances that they are on top of it and if there are risks, I want to determine what can be done to mitigate those risks immediately,” Blumenthal said. Washington isn't happy with Opec+’s decision to begin cutting oil production next month by two million barrels a day. The Saudi monarchy and Democrats in Washington seem to be at loggerheads over the matter. The decision sent indications that Saudi is siding with Russia in the Ukraine war, besides hitting the Biden administration hard before next month's mid-term elections. The reduction in oil output will lead to an increase in gas prices. Biden even warned that Saudi would face “consequences” for the move. On Sunday, the White House national security adviser, Jake Sullivan, said Biden will “methodically” work towards re-evaluating the relationship with Saudi Arabia. However, changes to security assistance to the major oil producer are likely. Also Read | OPEC decision of output cut not aimed against US, says Saudi Arabia Blumenthal informed that a primary area of concern was to make sure that Russia doesn't benefit from the sensitive technology that has been shared with US partners in Riyadh. “We are going to be consulting with the Pentagon, speaking to them very frankly about their assessment of the risk in the transfer of technology in advanced weapons systems made already,” he said. “I am not leaping to any conclusions but it needs to be a consideration that is heightened.” While the Republicans haven't said much on the matter till now, Blumenthal expects bipartisan support for measures to curb weapons sales and the issue is likely to be taken up formally next month. (With inputs from agencies)

US Senator cautions against Saudi Arabia sharing US defense technology with Russia