IMF: OPEC Partners to Increase Oil Production from July

SEATTLE (Oil Monster): The International Monetary Fund (IMF) predicted that OPEC and its partners are likely to gradually increase oil production starting from July this year. It anticipates full reversal of cuts by early-2025.

OPEC and its allies are scheduled to meet on 1^st June, 2024. As per some analysts, the producer group may start to unwind the curbs.

The move will help Saudi Arabia to return to world’s fastest growing economies next year. IMF expects oil production from Saudi Arabia to touch 10 MMbpd by early-2025. It must be noted that the production by the country is currently at the lowest level in almost three years. Incidentally, the country has a total production capacity of around 12 MMbpd.

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In its latest review, the IMF raised the 2025 growth estimate for Saudi Arabia from 5.5% to 6.0%. The projected growth is next only to India among major economies of the world and is the fastest growth rate over the past decade. Earlier, IMF had lowered the 2024 economic growth of the country from 2.7% to 2.6%, based on actual 2023 figures.

IMF foresees negligible impact from slower than anticipated rate cuts by the U.S. Fed Reserve. The country’s non-oil sector growth momentum is expected to remain strong at least for the next couple of years. The series of transformative reforms undertaken by the country over the years will further boost Saudi’s economic growth.