+
OPEC+ extends oil output cuts through second quarter
OIL & GAS

OPEC+ extends oil output cuts through second quarter

It was reported that OPEC+ members, led by Saudi Arabia and Russia, had agreed to extend voluntary oil output cuts into the second quarter, providing additional support to the market amidst concerns about global economic growth.

The de facto leader of the Organisation of the Petroleum Exporting Countries (OPEC), Saudi Arabia, stated that it planned to prolong its voluntary cut of 1 million barrels per day (bpd) until the end of June, maintaining its output at approximately 9 million bpd. According to the state news agency SPA, the reversals of these cuts would be gradual and contingent on market conditions.

Russia, heading the OPEC allies collectively referred to as OPEC+, announced that it would reduce oil production and exports by an additional 471,000 bpd in the second quarter. This decision was made in coordination with certain participating countries within OPEC+, as stated by Russian Deputy Prime Minister Alexander Novak.

In November, OPEC+ had initially agreed to voluntary cuts totalling about 2.2 million bpd for the first quarter, with Saudi Arabia extending its own voluntary cut. The individual announcements of these cuts were made by OPEC+ members, including Kuwait's commitment to reducing oil output by 135,000 bpd through June, Algeria's decision to curb output by 51,000 bpd, and Oman's plan to reduce output by 42,000 bpd.

Since late 2022, OPEC+ has been implementing a series of output cuts to bolster the market amidst increased production from the United States and other non-member producers. These efforts have also addressed concerns about demand as major economies contend with high interest rates.

Although rising geopolitical tensions due to attacks by the Iran-aligned Houthi group on Red Sea shipping have supported oil prices, worries about economic growth and high interest rates have exerted downward pressure. On Friday, Brent futures for May settled $ 1.64 higher, or 2%, at $ 83.55 a barrel.

Reuters reported last week that OPEC+ would contemplate extending oil output cuts into the second quarter, with one source stating that it was "likely."

It was reported that OPEC+ members, led by Saudi Arabia and Russia, had agreed to extend voluntary oil output cuts into the second quarter, providing additional support to the market amidst concerns about global economic growth. The de facto leader of the Organisation of the Petroleum Exporting Countries (OPEC), Saudi Arabia, stated that it planned to prolong its voluntary cut of 1 million barrels per day (bpd) until the end of June, maintaining its output at approximately 9 million bpd. According to the state news agency SPA, the reversals of these cuts would be gradual and contingent on market conditions. Russia, heading the OPEC allies collectively referred to as OPEC+, announced that it would reduce oil production and exports by an additional 471,000 bpd in the second quarter. This decision was made in coordination with certain participating countries within OPEC+, as stated by Russian Deputy Prime Minister Alexander Novak. In November, OPEC+ had initially agreed to voluntary cuts totalling about 2.2 million bpd for the first quarter, with Saudi Arabia extending its own voluntary cut. The individual announcements of these cuts were made by OPEC+ members, including Kuwait's commitment to reducing oil output by 135,000 bpd through June, Algeria's decision to curb output by 51,000 bpd, and Oman's plan to reduce output by 42,000 bpd. Since late 2022, OPEC+ has been implementing a series of output cuts to bolster the market amidst increased production from the United States and other non-member producers. These efforts have also addressed concerns about demand as major economies contend with high interest rates. Although rising geopolitical tensions due to attacks by the Iran-aligned Houthi group on Red Sea shipping have supported oil prices, worries about economic growth and high interest rates have exerted downward pressure. On Friday, Brent futures for May settled $ 1.64 higher, or 2%, at $ 83.55 a barrel. Reuters reported last week that OPEC+ would contemplate extending oil output cuts into the second quarter, with one source stating that it was likely.

Next Story
Real Estate

No glass boxes!

India is moving away from the ‘glass box’ syndrome, all-glass façades that were widely used in commercial buildings in the last two decades but came at a significant environmental cost given the country’s predominantly hot and humid climate. Poor thermal performance, excessive heat gain and dependency on mechanical cooling systems made buildings with glass façades energy guzzlers and significantly increased their carbon footprint.That said, it’s important to be aware that “glass is not the enemy,” points out Heena Bhargava, Architect, Architecture Discipline. “How it ..

Next Story
Infrastructure Transport

Why do pavements fail?

India’s highways continue to expand at a healthy pace. But conversations on the surface quality of highways are growing louder because major deficiencies and black spots continue to be identified, and they are cause for concern.“Road surface roughness causes vehicle vibrations that, in turn, can affect the performance of drivers,” explains Dr V K Gahlot, Road Safety Auditor, Centre for Research and Sustainable Development (CfRSD). “Continuous exposure may induce fatigue, a contributory factor to road accidents. Road surface roughness also affects the vehicle operating cost...

Next Story
Infrastructure Urban

APAC Logistics Rents Fall for First Time Since 2020

Logistics rents across the Asia-Pacific region declined 0.4% year-on-year in H1 2025, marking the first annual drop since 2020, according to Knight Frank’s Logistics Highlights H1 2025 report. Despite global trade tensions and cautious occupier sentiment, India emerged as a standout performer, driven by robust manufacturing momentum and supply chain recalibration.Regional Trends and DivergenceWhile rents largely remained stable across most markets, regional differences became more pronounced:Mainland China continued to see rental declines, though the pace of decline moderated to 12.8% YoY, s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?