By Alexander Miller, consultant in energy markets. Eurasia Business News, November 3, 2024. Article n°1280.

Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman have agreed to extend their oil production cut to 2.2 million barrels per day (bpd) until the end of December 2024. The countries also announced their intention to compensate for overproduction from January 2024 by September 2025 in accordance with the plan, according to the OPEC website.

The statement notes that the OPEC+ countries reaffirmed a common commitment to achieving compliance with the organization’s Declaration of Cooperation, including voluntary adjustments to production. The statement of Iraq and the joint statement of Russia and Kazakhstan, which confirmed the readiness to follow the parameters of the deal and compensation plans, was also noted.

For Russia, OPEC+ has an official quota for oil production in 2024 at 9.95 million bpd. On October 2, it was reported that Russia had fully implemented the September agreements within OPEC+.

Advertisements

The extension comes amid ongoing concerns regarding slowing demand in major markets like China and the United States, which has negatively impacted oil prices in recent months. By maintaining these cuts, OPEC+ aims to stabilize the market and support prices that have been under pressure due to a tepid economic outlook and potential increases in supply from other regions.

This decision follows previous discussions about gradually rolling back production cuts, which were delayed due to market conditions. The next OPEC+ ministerial meeting is scheduled for December 1, where further evaluations of production levels will be conducted.

Our community already has nearly 140,000 readers!

Subscribe to our Telegram channel

Follow us on Telegram, Facebook and Twitter

© Copyright 2024 – Eurasia Business News. Article no. 1280.