OPEC+ decides to extend additional voluntary supply cuts – ING

OPEC+ decides to extend its additional voluntary supply cuts of 2.2m b/d by a further three months, ING’s commodity analyst Warren Patterson notes.

The market seems somewhat disappointed

“OPEC+ members decided yesterday to extend their additional voluntary supply cuts of 2.2m b/d by a further three months. It means the group is now currently set to gradually increase supply from only April 2025.”

“In addition to a further delay in bringing supply back, members will also bring this supply back at a slower pace. Previously, the group were set to bring 2.2m b/d of supply back online over the course of 12 months. However, members will now bring this supply back over the course of 18 months. So, this full supply is scheduled to return by September 2026.”

“The market seemed somewhat disappointed or at least indifferent to the extension with ICE Brent settling 0.3% lower on the day, leaving it just above US$72/bbl. This suggests that the market was expecting a more aggressive move from OPEC+.”