Some members of the OPEC+ group, made up of the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, agreed on Sunday to extend a voluntary cut in oil production until the end of the second quarter. This was reported by the Reuters agency, citing informed sources.
OPEC+ has imposed a series of output cuts from late 2022 to support the market as production in the United States and other non-member countries rose, while there were concerns about demand developments as the world’s major economies grappled with high interest rates rates and weak growth. Last November, OPEC+ agreed on voluntary cuts by the end of the first quarter in a total volume of about 2.2 million barrels. Of that, Saudi Arabia has promised to extend its existing production curbs by a million barrels a day.
Oil prices have recently found support from rising geopolitical tensions following Houthi attacks on ships in the Red Sea, although concerns about economic growth and the negative impact of high interest rates remain in the market. On Friday, the price of Brent crude rose by two percent to $83.55 per barrel.
Sources told Reuters last week that OPEC+ would consider extending production cuts until the end of the second quarter. Member countries announce cuts individually.
Russian Deputy Prime Minister Alexander Novak announced on Sunday that the country will cut oil production and exports by another 471,000 barrels per day in the second quarter, in coordination with some OPEC+ member countries. Saudi Arabia has promised to extend output cuts of one million barrels a day until the end of the second quarter. It should thus produce approximately nine million barrels per day. Kuwait said it would cut output by 135,000 bpd by the end of June, Algeria by 51,000 bpd and Oman by 42,000 bpd.
2024-03-03 17:07:44
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