OPEC and Oil Prices

G. Samdani Avatar



OPEC’s production quotas significantly affect oil prices. When OPEC reduces production, oil becomes scarcer, driving prices up. Conversely, increasing production can lead to lower prices. This ability to influence prices makes OPEC a major player in the global economy.

Recent OPEC Strategies

In late 2022, OPEC and its allies, known as OPEC+, implemented significant oil production cuts. This strategy aimed to bolster oil prices amidst economic uncertainty. As of June 2024, these production cuts have been extended into 2025.

The Future of OPEC

OPEC’s role in the oil industry is constantly evolving. The rise of alternative energy sources and fluctuations in global demand pose challenges. However, OPEC’s vast oil reserves and its ability to influence production ensure it will remain a significant force in the global oil market for the foreseeable future.

OPEC+ agrees to extend group-wide and voluntary cuts: Delegates. No objections by any member states to the extension of the group cuts to the 3rd quarter of 2025 (the cut amounts to around 2.2 million bpd).Under this agreement the UAE will be getting a higher baseline.

Leave a Reply

Your email address will not be published. Required fields are marked *