The UAE will extend its additional voluntary oil output cut of 163,000 barrels per day (bpd) for the second quarter of 2024, in coordination with some OPEC+ countries.
In a statement, the UAE said that its production will remain at 2.912 million bpd until the end of June 2024. Afterwards, in order to support market stability, these additional cut volumes will be reversed gradually subject to market conditions.
This cut is in addition to the voluntary cut of 144,000 bpd previously announced by the UAE in April 2023, which extends until the end of December 2024, the statement said, according to news agency WAM.
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This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.
Other OPEC countries extend cuts
The Ministry of Energy in Saudi Arabia, too, announced that the Kingdom will extend its voluntary cut of one million barrels per day, which was implemented in July 2023, until the end of the second quarter of 2024.
Therefore, the Kingdom’s production will be approximately 9 million barrels per day until the end of June 2024.
This cut is in addition to the voluntary cut of 500,000 barrels a day previously announced in April 2023, which extends until the end of December 2024, Saudi Press Agency said.
Meanwhile, Russia will cut oil production and exports by an additional 471,000 bpd in the second quarter, news agency Reuters said.
OPEC+ in November agreed to voluntary cuts totalling about 2.2 million bpd for the first quarter, led by Saudi Arabia rolling over its own voluntary cut.
Iraq, meanwhile, will extend its 220,000 bpd output cut, while Kuwait will extend its 135,000 bpd output cut. Algeria, too, said it would cut by 51,000 bpd and Oman by 42,000 bpd.
Geopolitical tensions, especially those affecting Red Sea shipping, have provided a bolstering effect on oil prices. However, apprehensions surrounding economic growth and elevated interest rates have exerted downward pressure. Brent futures for May concluded the week $1.64 higher, marking a 2 percent increase, settling at $83.55 per barrel on Friday.
