The members of the Organisation of the Exporting Countries and its allies (OPEC+) have agreed to extend voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter (Q2) of 2024.
According to a statement on Sunday, the production level aligns with the 35th OPEC ministerial meeting held on June 4, 2023.
The cuts are also in addition to the voluntary cuts previously announced in April 2023 and later extended to the end of 2024, the oil cartel said.
“These additional voluntary cuts are announced by the following OPEC+ countries: Saudi Arabia (1,000 thousand barrels per day); Iraq (220 thousand barrels per day); United Arab Emirates (163 thousand barrels per day); Kuwait (135 thousand barrels per day); Kazakhstan (82 thousand barrels per day); Algeria (51 thousand barrels per day); and Oman (42 thousand barrels per day) for the second quarter of 2024,” the statement reads.
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OPEC said in order to maintain market stability, the voluntary cuts will be returned gradually — subject to market conditions.
The listed production levels, OPEC said, will be in addition to the announced voluntary cut of 471,000 bpd by Russia for Q2, 2024, and it will come from crude oil production and exports.
“In April 350 thousand barrels per day from production and 121 thousand barrels per day from exports,” the international group said.
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“In May 400 thousand barrels per day from production and 71 thousand barrels per day from exports.
“In June 471 thousand barrels per day totally from production.”
OPEC said Russia’s voluntary production cut is also in addition to the voluntary cut of 500,000 bpd previously announced in April 2023, which extends until the end of December 2024.
“The export cut will be made from the average export levels of the months of May and June of 2023,” the oil cartel said.
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Following the development, Brent crude, Nigeria’s oil benchmark dropped to $83.16 per barrel while US West Texas Intermediate (WTI) fell 0.65 to $79.44 a barrel on Monday.
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