2/2

© Reuters. A view of the entrance to the Organization of the Petroleum Exporting Countries (OPEC) headquarters in Vienna, Austria, November 30, 2023. REUTERS/Leonhard Foeger

2/2

By Maha El Dahan and Alex Lawler

DUBAI (Reuters) -OPEC+ members led by Saudi Arabia and Russia agreed on Sunday to extend voluntary oil output cuts into the second quarter, sources said, giving extra support to the market amid concerns over global economic growth.

Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), said it would extend its voluntary cut of 1 million barrels per day (bpd) through the end of June, leaving its output at around 9 million bpd.

The cuts would be reversed gradually, according to market conditions, state news agency SPA said.

Russia, which leads OPEC allies collectively known as OPEC+, will cut oil production and exports by an additional 471,000 bpd in the second quarter, in coordination with some OPEC+ participating countries, Russian Deputy Prime Minister Alexander Novak 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.

OPEC+ members announce the cuts individually. UAE said it would extends its cut of 163,000 bpd through June while Kuwait said it would cut output by 135,000 bpd. Algeria will cut by 51,000 bpd and Oman by 42,000 bpd. Iraqi Oil Minister Hayan Abdel-Ghani confirmed to reporters Baghdad would also extend its cut.

OPEC+ has implemented a series of output cuts since late 2022 to support the market amid rising output from the United States and other non-member producers and worries over demand as major economies grapple with high interest rates.

Oil prices have found support from rising geopolitical tensions due to attacks by the Iran-aligned Houthi group on Red Sea shipping, although concern about economic growth and high interest rates has weighed. futures for May settled $1.64 higher, or 2%, at $83.55 a barrel on Friday.

Sources told Reuters last week that OPEC+ would consider extending output cuts into the second quarter, with one saying it was “likely”.

The oil demand outlook is uncertain for this year. OPEC expects another year of relatively strong demand growth of 2.25 million bpd, led by Asia, while the International Energy Agency expects much slower growth of 1.22 million bpd.

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision