OPEC+ countries, following the recent decision to cut oil production by 2.2 million barrels per day (bpd) for the first quarter of 2024, will also maintain a voluntary reduction of 1.66 million bpd until the end of 2024, as stated by Russian Deputy Prime Minister Alexander Novak to reporters.
"I would like to remind everyone that we have agreements in place until the end of 2024. The decisions made in April to further reduce production by 1.66 million barrels per day (bpd) remain in effect until the end of 2024. Additionally, during the current winter period, there will be further cuts to help balance the market," stated Novak.
He highlighted that the decision to implement additional voluntary cuts by certain OPEC+ countries, made during the November 30 meeting, is positive information for the market. According to Novak, this measure aims to reduce supplies to global markets during periods of low demand, ensuring a balance between supply and demand and maintaining the stable operation of the oil industry. Novak also acknowledged the possibility of adjusting OPEC+ decisions in the future.
"Now, the situation requires a decision to reduce the supply, but as demand grows, it seems that balancing decisions will be made in the other direction as well," he added.
During a meeting on November 30, several OPEC+ countries decided on additional voluntary cuts for the first quarter of 2024, amounting to a total of 2.2 million bpd. Concurrently, Saudi Arabia extended its voluntary production cut by 1 million bpd, a measure that had been in place since the summer, and Russia deepened its oil supply cuts by an additional 200,000 bpd, reaching a total reduction of 500,000 bpd. Several alliance countries, including Iraq, Kuwait, the UAE, Kazakhstan, Algeria, and Oman, committed to cutting production by an additional 700,000 bpd.
Furthermore, several OPEC+ countries, such as Russia and Saudi Arabia, will voluntarily reduce oil production by a combined total of 1.66 million bpd from spring 2023 to the end of 2024.
GSV "Russia - Islamic World"
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Based on materials from TASS