London
CNN
—
The OPEC+ oil producing group announced on Thursday that many of its countries have agreed to voluntarily reduce oil production by a total of 2.2 million barrels per day in the first quarter of 2024.
Saudi Arabia, the world’s largest exporter of crude oil, will lead the effort by extending a voluntary production cut of 1 million barrels per day of oil – which was scheduled to last until the end of December – for another three months, according to a statement from OPEC+, which includes… Organization of the Petroleum Exporting Countries and its allies.
The state-run company said that the Kingdom’s production will remain at about 9 million barrels per day until the end of March 2024. Saudi Press Agency Citing an “official source from the Ministry of Energy” after Saudi officials met with other major oil-producing countries in Vienna on Thursday.
In addition to Saudi Arabia, the following voluntary production cuts were announced: Russia by 500 thousand; Iraq with 223,000; United Arab Emirates by 163,000; Kuwait by 135,000; Kazakhstan with 82,000; OPEC+ said Algeria had 51,000 and Oman had 42,000.
The group too Announce After the meeting, which Brazil, another major oil producer, will join at the beginning of next year. It is not yet clear whether this means Brazil will have to adhere to OPEC+ joint production quotas.
Brazilian Mines and Energy Minister Alexandre Silveira informed OPEC+ members on Thursday that he had received President Luiz Inacio Lula da Silva’s stamp of approval to join, pending a technical review of the cooperation pact.
Brent crude, the global oil benchmark, and West Texas Intermediate crude, the US benchmark, settled 0.3% lower at $82.83 per barrel and 2.3% lower at $75.96 per barrel, respectively, after the Saudi report was released. The contracts were trading at around $84 and $79 before the meeting.
The ministerial meeting was originally scheduled to take place on Sunday, but OPEC+ postponed it last week until Thursday, without providing a reason.
some Media ReportsShe said, citing unnamed OPEC+ sources, that the postponement was due to disagreements regarding the production levels of some members and the potential cuts associated with them.
Despite the group’s pledges this year to cut production by 3.66 million barrels per day until the end of 2024 – and additional voluntary cuts by Saudi Arabia and Russia – Brent and WTI prices have now fallen by 13% and about 16%, respectively, since their agreement. It peaks in late September.
Prices were under pressure due to record crude oil production in the United States and concerns about declining global demand for fuel, especially in China, the world’s largest oil importer.
– Hanna Ziyadi contributed to the preparation of the reports.