OPEC+ countries agree to reduce oil production until first quarter of 2024

By Asim Aliev

Several OPEC+ countries announced on Thursday that they have agreed to voluntarily cut oil production by a total of 2.2 million barrels per day in the first quarter of 2024.

The additional voluntary cuts announced by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will be the following: Saudi Arabia 1 million bpd, Iraq 223,000 bpd. , United Arab Emirates 163 thousand barrels, Kuwait 135 thousand barrels, Kazakhstan 82,000 barrels, Algeria 51,000 barrels, and Oman 42,000 barrels, Azernews reports, citing Boomberg.

Russia will reduce exports by 500 thousand barrels per day for the same period in May and June 2023. It will consist of 300 thousand barrels of crude oil and 200 thousand barrels of petroleum products.

The voluntary reductions will be in effect from January to March next year and will be gradually increased in accordance with market conditions to maintain market stability. The cuts will also be in addition to the current collective production cut of 3.6 million barrels per day confirmed at the 36th OPEC and non-OPEC ministerial meeting on Thursday. through the end of 2024,

The collective production cuts include 2 million barrels per day in October 2022 and 1.6 million barrels per day in May.