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| OPEC+ cuts oil production. (Source: Reuters) |
A joint statement after the meeting stated: “The participating countries decided… to adjust the total combined crude oil production of OPEC and non-OPEC partners down to 40.46 million barrels/day, starting from January 1, 2024 until December 31, 2024.”
Specifically, Saudi Arabia will maintain crude oil production at 10.478 million barrels/day, while Russia will cut daily production by an additional 650,000 barrels to 9.828 million barrels/day from January 2024.
“This is the required production level for February 2023, assessed based on the average of secondary sources and may be revised in June 2023 as Russia is coordinating with secondary sources to update production figures,” OPEC’s note said.
OPEC+ said the change is in line with the continued commitment of the association and its external partners to work towards and maintain a stable oil market, while providing a long-term direction for the market, taking into account the proactive and successful approach of previous years.
OPEC+'s revised commitments are estimated to reduce production by a total of about 1.4 million barrels per day in 2024.
On the same day, the Saudi Arabian Ministry of Energy announced that in July 2023, the country will reduce production by 1 million barrels/day and may continue to extend the cut period if Riyadh deems it necessary.
Several other countries within the OPEC+ framework, including Iraq, Oman, Algeria, Kuwait, and the United Arab Emirates (UAE), also announced voluntary further cuts in oil production at levels of 211,000 barrels/day, 40,000 barrels/day, 48,000 barrels/day, 128,000 barrels/day, and 144,000 barrels/day, respectively, until the end of 2024.
OPEC+ will hold its next meeting in Vienna on November 26.
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