Oil, OPEC+ will extend cuts through 2024

Oil prey to volatility on the Emirates case

(Tiper Stock Exchange) – OPEC+ has decided to extend the current production cuts to oil production of 3.6 million barrels through 2024 and is also considering an additional 1 million barrel cut. The top decided it OPEC+the aggregation of Opec countries and additional members, including Russia, who met in Vienna to assess the state of the market.

The cartel of crude oil producers essentially confirmed a production ceiling of 40.46 million of barrels per day until 31 December 2024which consists of a pro-quota cut of 2 million of barrels, starting from last May, plus one additional cut of 1.6 million of barrels implemented by Saudi Arabia due to its greater spare capacity. Russia, for its part, has agreed to extend its cut by 500,000 barrels.

“In light of the commitment of OPEC and non-OPEC countries to achieve and sustain a stable oil market and provide long-term guidance for the market – reads the final release – and in line with the successful approach adopted by OPEC countries and non-OPEC to be prudent, proactive and preventive, it was decided to adjust the level of the total production of crude oil to 40.46 million barrels per day, starting from January 1, 2024 until December 31, 2024”.

OPEC+ countries have also decided to go back to meet every six months – next time will be the November 24 in Vienna – and to prolong the tasks of the monitoring committee.

According to Reuters sources, however, the possibility is already in the offing reduce production by a further 1 million of barrels, which could the overall cut to 4.6 million, equal to approximately 4.5% of global demand. A confirmation would come from the statements of Saudi Minister Abdulaziz bin Salman, who at the end of the meeting declared “you cannot even imagine what we are discussing”

According to Russian Minister Alexander Novak, the cut will serve to give greater stability to the market.

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