On Thursday (November 30th) local time, the OPEC Secretariat announced on its official website that several member countries of OPEC+ have announced additional voluntary production cuts, with a total reduction of 2.2 million barrels per day to support stability and balance in the oil market.
According to the press release, among these daily reductions of 2.2 million barrels, Saudi Arabia will reduce by 1 million barrels/day, Iraq by 223 thousand barrels/day, UAE by 163 thousand barrels/day, Kuwait by 135 thousand barrels/day, Kazakhstan by 82 thousand barrels/day, Algeria by 51 thousand barrels/day, and Oman by 42 thousand barrels/day.
The OPEC Secretariat stated that these production cut measures will be effective from January to the end of March in 2024. The press release also mentioned that gradual restoration will take place after the end of March next year based on market conditions in order to support oil market stability.
It should be noted that Saudi Arabia’s reduction of one million barrels per day is an extension of the production cut measures implemented since July this year. This means that their production level for the first quarter next year will remain around nine million barrels per day as it was during the second half of this year.
At the same time, Russia announced voluntary cuts of five hundred thousand barrels per day for the first quarter next year including three hundred thousand crude oil and two hundred thousand refined products. Similar to Saudi Arabia’s approach, Russia’s five hundred thousand barrel reduction includes an extension from this year’s measures with an additional cut amounting to two hundred thousand barrels per day.
In summary, most of OPEC+’s actual reduction at this meeting is an extension o