OPEC+ countries extended oil supply cuts until the end of June – Kommersant

OPEC+ countries have agreed to extend the reduction in oil exports by 2 million barrels per day (b/d) until the end of June, reports Bloomberg with reference to delegates of the organization’s member states. According to the agency’s interlocutors, according to the agreements reached, Saudi Arabia will continue to maintain the supply reduction at the level of 1 million bpd.

Bloomberg notes that in January, the reduction in supply from OPEC+ countries did not reach the promised volumes of 2 million bpd, because Iraq and Kazakhstan together exported several hundred thousand barrels per day more than they were entitled to under quotas. These countries promised to strictly adhere to the introduced rules and compensate for overproduction, the agency reports.

At the end of November 2023, OPEC+ countries agreed to extend the reduction in oil supplies. Saudi Arabia pledged to reduce oil exports by 1 million bpd, Russia – to increase the reduction to 500 thousand bpd, and the rest of the organization’s countries – to collectively reduce oil exports by 500 thousand bpd. The agreement is valid until March 2024.

15 February International Energy Agency published a report according to which in January 2024, global oil supplies fell sharply by 1.4 million bpd to an average of 101.45 million bpd. The decrease in supplies, as explained by the IEA, occurred against the backdrop of new voluntary cuts in exports by OPEC+ countries, as well as interruptions in oil production in North America due to severe cold weather.

Production in Russia, according to the IEA, in January decreased by only 40 thousand b/d, to 9.44 million b/d. The volumes of Russian exports in January also changed slightly – deliveries amounted to 7.7 million b/d (oil exports decreased by 1% – to 4.84 million b/d, oil products – increased by 0.5%, to 2.85 million b/d /With).

Read more in the Kommersant article. “Oil of undetermined purpose”.

Erdni Kagaltynov