The OPEC+ alliance has reached an agreement to extend oil production cuts until next year, in the face of low prices and a looming supply glut.
Following the ministerial committee meeting in Vienna Sunday, the alliance issued a statement indicating the total level of crude oil production of the OPEC+ countries will be 40.46 million barrels per day, starting from the first of January 2024 until the end of the same year.
Data from the target production plans schedule showed that Russia, Angola and Nigeria will reduce their production ceilings next year compared to current levels, while the UAE increases production by about 200,000 barrels per day. The coalition also scheduled the next meeting for November 26.
OPEC+ sources told Reuters that the alliance is likely to agree to a “renewal of policy” for 2023 and additional production cuts in 2024 if new production baselines are agreed, through which cuts and quotas are calculated for members.
Saudi Energy Minister Prince Abdulaziz bin Salman announced that his country, one of the most prominent OPEC members, will implement an additional voluntary cut in its crude oil production of 1 million barrels per day starting this July.
For his part, the Minister of Energy and Infrastructure of the United Arab Emirates, Suhail Al Mazrouei, said on his Twitter account that the UAE will extend its voluntary reduction of 144,000 barrels per day until the end of December 2024 as a precautionary measure, in coordination with the countries participating in the OPEC+ agreement, which was previously announced in April for voluntary cuts.
“This voluntary reduction will be from the required production level as agreed at the thirty-fifth ministerial meeting of OPEC+ on June 4, 2023,” he added.
Iraq announced its commitment to the decision of OPEC and its allies to voluntarily reduce crude oil production by 211,000 barrels per day until the end of 2024.
Iraqi Deputy Prime Minister and Oil Minister Hayyan Abdul Ghani said in a press statement that “Iraq will extend the reduction of voluntary crude oil production of 211,000 barrels per day until the end of December 2024 as a precautionary measure in coordination with the countries participating in the OPEC+ agreement that was previously announced last April, on voluntary cuts.” He stated that this decision came in line with the policy of “OPEC +” in maintaining the balance and stability of global markets.
Read: OPEC+ meeting this Sunday: Brace for a last-minute bombshell?
Oman’s energy ministry said it would extend the voluntary cut in oil output by 40,000 bpd until the end of next year.
Russian Deputy Prime Minister Alexander Novak told reporters after the meeting that the cuts decided since the beginning of May by nine countries, including Riyadh and Moscow, totaling 1.6 million barrels per day “have been extended until the end of 2024.
The second meeting in the Austrian capital since March 2020, began on Sunday afternoon, after three hours delay.
Ministers from the 13 members of the Organization of the Petroleum Exporting Countries (OPEC), who met Saturday at the organization’s headquarters in Vienna under the auspices of Saudi Arabia, were joined by their 10 partners, led by Russia.
The controversy with some African members has delayed the conclusion of an agreement. Earlier on Sunday, senior members of the coalition expressed confidence that a deal would be reached.
The negotiations lasted several hours, with media reporting differences between the 23 participants, who account for 60 percent of the world’s oil production.
The UAE received an increase in the basis for calculating its share of crude production, according to the new table published by OPEC.
Before the meeting began, a source familiar with the discussions said a reduction of one million barrels per day had been put forward, but the outcome of the meeting remained uncertain.
OPEC representatives remained silent about their intentions as delegations arrived at the cartel headquarters, where a crowd of journalists waited for them.
Saudi Oil Minister Prince Abdulaziz bin Salman only commented on the weather, evading questions from reporters.
His Emirati counterpart, Suhail bin Mohammed Al Mazrouei, said he was “looking forward to a decision that would balance the market”, without elaborating.
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