OPEC and its partners, collectively known as OPEC+, have decided to extend the current reductions in oil output at least until the third quarter of this year in order to stabilize oil prices, Azernews reports.

After a virtual meeting of oil and energy ministers from OPEC+, the organization stated that they would extend the production quotas for its members throughout 2025. These quotas include maintaining a 2 million barrels per day (bpd) cut from the originally agreed output targets set in late 2022.

While the production quotas for OPEC+ countries in 2025 largely mirror those of 2024, there's been an agreement to increase the output limit for the United Arab Emirates by 300,000 bpd to 3.519 million bpd.

In a separate statement on the OPEC website, eight OPEC+ nations, including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, declared their intention to continue voluntary production cuts of 1.65 million bpd, initiated in April 2023, until the end of 2025.

Additionally, these eight countries will extend voluntary output reductions of 2.2 million bpd, initially announced in November 2023, until September 2024. These cuts will gradually be scaled back on a monthly basis until September 2025 to support market stability, but adjustments can be made based on market conditions.

These decisions were made after a meeting of oil ministers from these eight countries in Riyadh, alongside the broader OPEC+ ministerial gathering.

The voluntary cuts are subtracted from the production quotas set by OPEC+ for each country.

Despite oil prices hovering just above $80 a barrel due to global economic uncertainties, high interest rates, and increased supply from non-OPEC+ producers, OPEC mentioned in its statement that these measures were taken to maintain stability in the oil market and provide guidance and transparency for the long term, following a cautious, proactive, and preemptive approach.

OPEC has retained its optimistic forecast for robust global oil demand growth of 2.2 million bpd in 2024 and 1.8 million bpd in 2025, as stated in its latest market report.

The next ministerial meeting for OPEC+ is scheduled for December.