“OPEC +” extends the agreement to reduce oil production until the end of 2024

The OPEC + alliance agreed to extend the agreement to reduce oil production from December 2023 to the end of 2024, according to a statement issued by the alliance.

Last November, the coalition began implementing a production cut of two million barrels per day, before it surprised the markets with a voluntary cut by major producers, starting from the beginning of last May, by 1.66 million barrels per day.

The coalition statement issued today, Sunday, after the end of the ministerial committee meeting in Vienna, indicated that the total level of crude oil production for OPEC + countries will be 40.46 million barrels per day, from January 1, 2024 until the end of the same year, while the data of the target production plans schedule showed a reduction in Russia’s production ceiling. Angola and Nigeria over the next year compared to current levels, and the United Arab Emirates production will increase by about 200,000 barrels per day. The coalition also decided to hold the next meeting on November 26.

New voluntary cut

The Kingdom of Saudi Arabia decided to provide an additional temporary voluntary cut, as the Saudi Energy Minister, Prince Abdulaziz bin Salman, confirmed during a press conference after the alliance meeting in Vienna, that the Kingdom will voluntarily reduce production by one million barrels per day, starting from the first of next July, for a month that can be extended.

Extension of the current voluntary cut

Within the framework of the current voluntary reduction, Russia, Saudi Arabia, the Sultanate of Oman, the UAE and Iraq decided, in separate statements, to extend the voluntary production reduction plan that was agreed upon last April, to end in December 2024.

The main oil producers in the OPEC + alliance announced last April a voluntary cut in production by 1.16 million barrels per day, starting from May until the end of this year, after Russia took a previous step with a voluntary cut of 500,000 barrels per day.

Oil prices witnessed sharp fluctuations during the past week, as they lost about 6% at the beginning of the week, affected by the US debt ceiling deal, which was surrounded by doubts and ended in agreement on Wednesday, which compensated for the losses, so that oil closed on Friday for July contracts at $ 76 a barrel for Brent crude. And $71.8 for US crude.