OPEC+ extends deep oil production cuts until 2025

STORY: The OPEC+ group of oil-producing nations has agreed to extend its deep production cuts until 2025.

Sunday’s move comes amid tepid demand, high interest rates and rising output in its big rival, the US.

Such factors have caused benchmark Brent crude prices to trade close to $80 a barrel – below what many of the group’s members need to balance their budgets.

OPEC and allies led by Russia have made deep production cuts from the end of 2022.

They are currently cutting production by 5.86 million barrels per day – or nearly 6% of global demand.

Now, the group says at least some of those cuts will extend into next year.

The energy minister for Saudi Arabia – OPEC’s dominant player – said the organization would wait for signs that growth is picking up and interest rates are falling.

The news did not give oil prices an immediate boost, with Brent trading lower in early Asian trade on Monday.