Several OPEC+ members have announced extensions of oil output cuts into the second quarter to support the “stability and balance of oil markets”.
OPEC+ is an oil-producer group comprising member countries of the Organization of the Petroleum Exporting Countries (OPEC) and their allies.
OPEC stated on Sunday night that its Secretariat “noted the announcements” of several OPEC+ countries extending additional voluntary cuts totalling 2.2 million barrels per day (bpd) for the second quarter of 2024, Xinhua news agency reported.
The reductions are taken from the quotas adopted at the OPEC+ ministerial meeting in June 2023. They are in addition to the voluntary output cuts announced by OPEC+ countries in April last year and later extended until the end of 2024, OPEC said.
In November last year, Saudi Arabia, Russia and several other OPEC+ countries announced voluntary production cuts totalling about 2.2 million bpd for the first quarter of this year.
Saudi Arabia’s Ministry of Energy said on Sunday that the country, the de facto leader of OPEC, would extend its voluntary production cut of 1 million bpd through the end of June. The country’s oil production will be approximately 9 million bpd until the end of the second quarter, according to the ministry.
Russia, a leading OPEC ally, also announced voluntary cuts of 471,000 bpd from its crude production and exports for Q2, slightly lower than its cuts of 500,000 bpd in Q1.
Other OPEC+ countries, including Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, also extended their voluntary production cuts into Q2.
However, the OPEC statement noted that these voluntary cuts “will be returned gradually subject to market conditions” to support market stability after June.
OPEC+ countries are set to convene a ministerial meeting in June to discuss production targets.