Crude prices dropped early in trading after OPEC+ decision to extend production cuts

( REUTERS/Dado Ruvic)


The weekend decision by OPEC+ to extend its deep oil output cuts into the coming year sent crude oil prices tumbling by more than $2 a barrel in Monday’s trading.

Trading sent prices down to new lows as West Texas Intermediate, the US benchmark fell nearly 4%.

OPEC and allies led by Russia have made production cuts since late 2022 and on Sunday agreed to extend their cuts of of 3.66 million bpd by a year until the end of 2025 and prolong the cuts of 2.2 million bpd by three months until the end of September 2024.

The countries which have made voluntary cuts to output are Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia and the United Arab Emirates.

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