OPEC+ countries have agreed to extend oil production cuts by 2 million barrels per day until the end of June, Bloomberg writes, citing delegates who spoke on condition of anonymity. According to them, Saudi Arabia will be responsible for half of the production cut.
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What is known
This is a decision coincided with the expectations of analysts and traders, who pointed to the need to reduce supplies due to a sharp increase in production from some OPEC+ competitors, as well as low economic forecasts for China, Bloomberg notes.
International oil prices have settled at around $80 per barrel this year, which “may not be enough” for many cartel countries and their partners, the agency points out.
Bloomberg notes that in January, OPEC+ countries , which produce more than 40% of the world's oil, failed to fulfill their obligations and reduce production by 2 million barrels per day. In particular, quotas were exceeded by “several hundred thousand barrels per day” in Iraq and Kazakhstan. Russia also showed “mixed results,” the agency writes: it only recently completely cut production, which it promised to do almost a year ago.
Recall
At the end of last November, OPEC+, whose countries produce more than 40% of the world's oil, announced voluntary cuts in oil production for the first quarter of 2024 in the amount of 2.2 million barrels per day.
Saudi Arabia confirmed an extension of the reduction by 1 million barrels per day, Russia pledged to reduce production by 0.5 million barrels per day. The remaining quotas fell on Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.
