OPEC+ member countries announce additional voluntary cuts for 2024

Several member nations of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have agreed to extend additional voluntary supply cuts in 2024 amounting to 2.2 million b/d.

PHOTO: Oil barrels coloured in flags of OPEC member countries on a world political map background. Getty Images

The Vienna-headquartered group convened a virtual meeting yesterday to discuss supply quotas and production cuts for its members, “aimed at supporting the stability and balance of oil markets,” its secretariat said.

OPEC’s leading oil producer and de-facto leader Saudi Arabia will cut an additional 1 million b/d oil supply starting 1 January until the end of March 2024, it said. The country currently produces 9 million b/d.

Other OPEC+ countries that have pledged to make additional production cuts during the same time period include Iraq (223,000 b/d), the UAE (163,000 b/d), Kuwait (135,000 b/d), Kazakhstan (82,000 b/d) Algeria (51,000 b/d) and Oman (42,000 b/d).

OPEC’s top ally Russia has also agreed to cut exports by an additional 500,000 b/d during January-March 2024, the group said. This will consist of 300,000 b/d of crude oil and 200,000 b/d of refined products, it further added.

These fresh cuts will be additional to the voluntary cuts that were previously announced in April 2023 and later extended into 2024, the group said. “Afterwards, in order to support market stability, these voluntary cuts will be returned gradually subject to market conditions” OPEC added.

By Aparupa Mazumder 

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