Brent crude slips to $81.02 per barrel as OPEC+ extends production cuts

Oil prices experienced a slight decline on Monday morning, as investors assessed the outcomes of the OPEC+ meeting held over the weekend.

Brent crude futures for August delivery dipped by 9 cents (0.11%) to $81.02 per barrel on the London-based ICE Futures exchange.

Meanwhile, July futures for WTI crude edged down by 0.05 dollars (0.06%) to $76.94 per barrel on the New York Mercantile Exchange (NYMEX) electronic trading platform.

Eight countries, led by Russia and Saudi Arabia, voluntarily agreed to further reduce their oil output by 1.7 million barrels per day (bpd) in addition to their existing quotas. These cuts, which began in May 2023 and were set to continue throughout 2024, will now be prolonged into 2025.

Moreover, the 2.2 million bpd restrictions, initially planned for the first and second quarters of 2024, will be extended until the end of September 2024. Following this period, these limitations will be gradually lifted on a monthly basis over the course of a year. However, this process can be paused or reversed depending on market conditions.