The OPEC+ alliance decided this Thursday that oil supply levels will be adjusted next year with “voluntary” cuts by most of its partners, such as those extended by Riyadh and Moscow until March 31, 2024. Brazil also announced its annexation from 2024.
That is the result of the teleconference held today by the Ministers of Energy and Petroleum of the 23 member countries of the group, a meeting initially called for last Sunday in Vienna and which was later postponed, apparently due to internal disagreements.
The fact that the meeting ended without the usual press conference and only with a brief written statement without any mention of an additional and binding reduction in output, seems to have disappointed the markets, where prices reversed the upward trend of recent days.
The ministers reaffirmed “the permanent commitment” of OPEC+ to “guarantee a stable and balanced oil market,” reads the final statement released by the Vienna secretariat of the Organization of the Petroleum Exporting Countries (OPEC).
In addition, they confirmed that the cuts adopted in previous meetings remain in force, for a total of 3.66 million barrels per day (mbd). For 2024, moderate readjustments of the quotas of Angola, Nigeria and Congo are expected, although still subject to a study by independent specialized entities, they added.
After the meeting, several countries separately announced plans to reduce their production in the first quarter of 2024. Thus, as expected, Saudi Arabia will extend its additional and voluntary cut, of one million barrels per day (mbd), which comes applying since July and leaves its quota at 9 mbd.
At the same time, Russia will increase the reduction on its oil exports from 300,000 to 500,000. Iraq promised to withdraw 211,000 bd, the United Arab Emirates 163,000 bd, Kuwait 135,000, Kazakhstan 82,000, Algeria 51,000 and Oman 42,000 bd.
Source: Larepublica
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