Oil Prices Edge Up as OPEC+ Extends Key Production Cuts Through 2025.
Global oil prices saw modest gains this week following OPEC+’s confirmation to extend some of its voluntary production cuts until December 2025. This decision aims to stabilize global supply amid evolving market conditions, although the unwinding of other cuts is also planned.
As of Friday, Brent crude is trading around **$69 per barrel**, while U.S. West Texas Intermediate (WTI) is near **$67 per barrel**. While these represent a recent upward movement, they are notably below peak prices seen earlier in the year. The extended cuts are primarily led by key producers Saudi Arabia and Russia, who continue to emphasize market stability as their objective.
This sustained level of oil prices is expected to have mixed implications for developing nations. For oil-importing countries like **Kenya**, already battling high inflation, continued elevated prices for refined petroleum products are likely to exacerbate economic pressures on consumers and businesses. Conversely, for major crude oil exporters like **Nigeria**, while higher crude prices boost government revenue and foreign exchange reserves, the nation still faces the challenge of importing refined products, which contributes to domestic inflation.
Airlines, transport companies, and manufacturers across these economies are anticipated to adjust their pricing structures in the coming weeks to account for rising fuel costs. Analysts caution that persistently high oil prices could complicate global economic recovery efforts and pose challenges for central bank monetary strategies in both advanced and emerging economies.
Author
Adedayo Obadina,
Talksocialtalks
