OPEC+ agreement to extend oil production cuts until the end of 2024

According to the report of the International Economic Group of Fars News Agency, the OPEC+ alliance agreed to extend the reduction of oil production from December 2023 (November 1402) to the end of 2024 (December 1403) during a meeting in Vienna, the capital of Austria.

According to the statement released by the OPEC+ alliance, in today’s meeting, the issue of new production cuts by all countries to support market stability was reviewed and it was decided that the level of total oil production from January 1, 2024 to December 31, 2024 will be 40. to be adjusted to 46 million barrels per day.

An official source in the Saudi Ministry of Energy announced in a separate statement: As a preventive measure, Saudi Arabia will extend its voluntary reduction of 500,000 barrels per day until the end of December 2024 with the coordination of some OPEC+ member countries, including Russia.

Production reduction of two million barrels per day according to the previous agreement of OPEC+ started last November (November 1401) and the markets on the first of last May (May 1402) with the voluntary reduction of large producers, by one million and 660 thousand barrels per day. They were surprised.

Alexander Novak, the Minister of Energy of Russia, also announced today his country’s intention to extend the voluntary reduction of oil production by 500,000 barrels per day until the end of December 2024 as a preventive measure.

Novak made these statements while participating in the OPEC+ meeting in Vienna, the capital of Austria, where he emphasized that this voluntary reduction of the required production level was agreed upon at the 35th OPEC+ ministerial meeting on June 4, 2023. .

OPEC+ countries are now trying to cut their oil production by two million barrels per day by the end of 2023 as part of the deal.

Meanwhile, last April, a number of coalition members, including Saudi Arabia, announced their intention to voluntarily increase production by another 1.16 million barrels per day from May until the end of the year. reduce

Russia, in turn, extended the voluntary reduction of 500 million barrels per day, which started in March.

Russia is a member of the alliance of producers, members of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC (OPEC Plus), which in April together with several other members voluntarily cut a total of 1,660,000 barrels per day from May, in addition to reducing the supply by 2 per day. million barrels (a total of 3,660,000 barrels per day) by the end of this year.

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