After several days of suspense and uncertainty the Organization of Petroleum Exporting Countries, OPEC+ have agreed to deepen its oil production cuts following a slump in crude prices and predictions of a renewed surplus next year.
Members of the group agreed to make 1million barrels per day, MMbpd of additional oil production cuts at a meeting on Thursday, delegates said.
These additional voluntary cuts are announced by the following OPEC+ countries : Saudi Arabia (1,000 thousand b/d); Iraq (223 thousand b/d); United Arab Emirates (163 thousand b/d); Kuwait (135 thousand b/d); Kazakhstan (82 thousand b/d); Algeria (51 thousand b/d); and Oman (42 thousand b/d) starting 1st of January until the end of March 2024. Afterwards, in order to support market stability, these voluntary cuts will be returned gradually subject to market conditions.
That reduction comes alongside the much-anticipated extension into next year of Saudi Arabia’s voluntary output curb of the same size.
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Members have an agreement principle that will now go to a vote, delegates said, asking not to be named because the information was private. Final details of the accord, including national production levels, will be announced individually by each country rather than in the customary OPEC+ communique, they said.
