OPEC+ countries agreed to cut production to maintain oil prices – Meduza

Countries OPEC+ tentatively agreed to cut production by more than one million barrels per day early next year, withreports Reuters with reference to two delegates before a meeting of cartel members.

The reduction, according to Reuters interlocutors, could amount to 1-2 million barrels per day in the first quarter of 2024. According to the agency’s interlocutors, as part of the agreements, Saudi Arabia will extend the production cut by one million barrels per day, which has been in effect since July. It is unknown what contribution other cartel participants will make, writes Reuters.

After this news, the price of Brent oil exceeded $84 per barrel for the first time in three weeks.

OPEC+ members, including Saudi Arabia and Russia, produce more than 40% of the world’s oil (about 43 million barrels per day). Now production has been reduced by about 5 million barrels per day, writes Reuters.

The meeting of OPEC+ participants takes place on November 30. By information Interfax, the meeting of the countries’ ministers had already ended, but only administrative issues were resolved at it. Adjustment of production quotas, as Interfax writes, will be considered at the upcoming meeting of the ministerial committee at 16:30 Moscow time and a full-format OPEC+ meeting at 17:30 Moscow time.

In October 2022, OPEC+ countries agreed to reduce production by 2 million barrels per day until the end of next year. In April 2023, some countries, including Russia and Saudi Arabia, announced an additional reduction of another 1.66 million barrels per day.

In addition, since August 2023, Russia has voluntarily reduced crude oil exports by 500 thousand barrels per day. September 5, Russian Deputy Prime Minister Alexander Novak announced about reducing this figure to 300 thousand barrels per day and noted that the measure will be in force until the end of the year.