OPEC+ will continue Oil Output Cuts as Prices remain Unchanged

The group of oil-producing countries agreed on Sunday to extend oil production curbs through 2024 as petrol prices remained stable, according to "The Hill".

The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, met on Sunday and resolved to prolong the oil output cutbacks under the leadership of Russia and Saudi Arabia. OPEC described the move as aiming to "achieve and sustain a stable oil market, and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive and preemptive", The Hill reported.

In April, Saudi Arabia, Russia, and other OPEC+ oil producers declared their intention to reduce production by 1.16 million barrels per day. The countries that produce oil had previously agreed to reduce their output by 2 million barrels per day through the end of the year.

When the decision was made, the National Security Council criticized it, stating that the administration did not consider cuts "advisable at this time given market uncertainty."

President Biden had also threatened that there would be "consequences" for Saudi Arabia, after the country announced the production cut last October of about 2 million barrels per day, The Hill reported.

This move is not expected to affect gas prices in the United States, as pump prices have remained flat even after Memorial Day weekend travel. As of Sunday, the national average of gas prices was USD 3.55 per gallon, according to AAA.