As the organization works to support the market in the face of slowing global demand growth, increasing interest rates, and rising rival U.S. production, OPEC+ decided on Sunday to extend its severe oil output cuts till 2024 and was considering extending them into 2025, according to OPEC+ sources.

A barrel of oil currently trades for about $80, which is less than what many OPEC+ countries require to balance their budgets. The main oil importer, China, is experiencing moderate demand growth, which has put pressure on prices.

Since late 2022, OPEC+?the Organization of the Petroleum Exporting Countries and its allies led by Russia?have implemented a number of significant output reductions.

Members of OPEC+ are now reducing their output by 5.86 million barrels per day (bpd), or roughly 5.7% of the world market.

According to two OPEC+ sources, OPEC+ decided to continue voluntary cuts of 2.2 million bpd through the third quarter of 2024.

The people added that discussions over cuts for 2025 and the fourth quarter are still ongoing. Prior reports cited sources suggesting the group would carry over a portion of the 3.66 million bpd decrease until 2025.

Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the United Arab Emirates are the nations that have voluntarily made concessions that are more significant than those reached with the larger group.

On Sunday, the group met in person and virtually for a series of discussions that started at roughly 09:30 GMT with a meeting of OPEC ministers alone.