Saudi Arabia, Russia Extend Voluntary Cuts Until End Of 2024 As Part Of OPEC+ Deal

OPEC+ has agreed on output cuts into 2024. 

On Sunday, Reuters reported that Saudi Arabia's energy ministry will extend its voluntary oil cut of 500,000 barrels per day (bpd) until the end of 2024. Russia has also agreed to extend its voluntary oil production cut of 500,000 bpd until the end of December 2024, Russian Deputy Prime Minister Alexander Novak said following the conclusion of a meeting of the world's leading oil producers.

OPEC+ has also agreed to give the United Arab Emirates a bigger quota next year. 

The UAE’s quota approval comes at the expense of African members who were asked to give up part of their unused quota. While they have been falling short, the approval is still a bitter political pill for them to swallow, Bloomberg reported. 

According to the report, OPEC+ will keep its official production targets unchanged for the rest of the year, with voluntary output cuts announced in April to remain in force but to stay voluntary. 

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Production targets for several countries have also been revised for 2024, with the UAE getting an increase of about 200,000 barrels a day in its target and Angola, Equatorial Guinea, Gabon, Nigeria, Azerbaijan, Brunei, Malaysia, and Sudan all seeing their allocations cut, as reported by Bloomberg. 

OPEC+ has also agreed to extend the voluntary cuts it announced in April to the end of 2024. The April announcement helped to drive oil prices about $9 per barrel higher to above $87, but they swiftly retreated under pressure following concerns over global economic growth and demand.

Cuts could total 1 million bpd in addition to the existing cuts of 2 million bpd and the voluntary cuts of 1.6 million bpd, which were announced unexpectedly in April and took effect in May, Reuters reported, citing the sources. 

OPEC+, which consists of the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world’s crude. 

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