OPEC+ extends oil output cuts to 2nd quarter of 2024

News code : ۱۴۵۵۶۵۶

The Organization of the Petroleum Exporting Countries (OPEC), along with 10 other nations together known as OPEC Plus agreed on Sunday to extend output cuts of 2.2 million barrels per day into the second quarter of 2024.

According to Reuters, Saudi Arabia announced that it will continue to cut one million barrels per day until the end of June, leaving its output around 9 million barrels a day.

The Saudi News Agency reported that the process of reducing oil production will be gradually reversed based on the market conditions.

Russia, which leads OPEC allies, will cut oil production and exports by an extra 471,000 barrels per day in the second quarter.

Russian Deputy Prime Minister Alexander Novak revealed new figures showing that production cuts will make up a rising proportion of the measure.

Some OPEC+ countries had already agreed in November to cut their production by about 2.2 million barrels per day. On Sunday, they issued a statement reconfirming the step.

Based on the statement, by the end of June, the UAE will reduce daily output by 163,000 barrels, Kuwait by 135,000 barrels, Algeria by 51,000 barrels, and Oman by 42,000 barrels.

OPEC+ members have reduced and extended their production many times since late 2022 largely because of increase in production by the United States and some other countries as well as the concern about the decrease in the global demand.