OPEC + is working on a complex deal to cut production this year and next

OPEC + is working on a complex deal and will agree at its meeting on Sunday to allow the extension of some deep production cuts until 2025, three sources said. OPEC + is currently cutting production by 5.86 million barrels per day, equivalent to about 5.7% of global demand. The cut includes 3.66 million barrels per day by OPEC + members for a valid period until the end of 2024, as well as voluntary cuts of 2.20 million barrels per day, due to expire at the end of June. The deal reached on Sunday could include an extension of some or all of the 3.66 million barrels per day cut until 2025, and some or all of the 2.20 million barrels per day cut until the third or fourth quarter of 2024, three people familiar with the matter said. Extending some of the cuts to 2025 could be conditional on agreeing on capacity data for member countries later in 2024.