The countries outlined immediate actions to comply with the production levels. Credit: MR.Zanis/Shutterstock.

The OPEC+ alliance has agreed to extend current oil output cuts for an additional two months.

The move comes after crude oil prices reached their lowest in nine months on the back of concerns about downbeat economic data from China, the world’s largest oil importer, and a weak global economy, reported Reuters.

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The decision was reached during a virtual meeting on 5 September 2024, where the group underscored its commitment to ensuring full compliance with the voluntary production adjustments.

The countries, Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia and the UAE, have all agreed to the extension.

In the lead-up to the meeting, Iraq and Kazakhstan, who had exceeded their production quotas since January 2024, reiterated their adherence to the agreed compensation schedules.

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The countries outlined immediate actions to comply with the production levels and meet their compensation schedules, including advancing maintenance plans and reducing output.

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Acknowledging these commitments, the eight OPEC+ members have decided to maintain their additional voluntary cuts of 2.2 million barrels per day for two months until the end of November 2024.

Following this period, the cuts will be gradually phased out, starting on 1 December 2024. The group has also agreed to maintain flexibility in adjusting the cuts as necessary and the overproducing countries have pledged to compensate for any excess volumes by September 2025.

Last week, OPEC+ planned to increase the output. However, concerns were raised within the group due to unstable oil market sentiment over the prospect of more supply from OPEC+, an end to a dispute halting Libyan exports and weakening demand outlook, reported the news agency.