OPEC+ Cuts Global Oil Output and Russian Production Adjustments
The OPEC+ alliance has agreed to lower total oil production to 40.46 million barrels per day starting in 2024, with Russia’s output target set at 9.928 million barrels per day. This plan was reported by TASS on the basis of OPEC sources.
The decision followed the results of the OPEC+ ministerial meeting conducted in Vienna on June 4. The next gathering is scheduled for November 26.
According to Alexander Novak, the Deputy Prime Minister of the Russian Federation, Russia will extend the current cut by an additional 500,000 barrels per day through December 2024. He noted that the cut is calculated according to a specific quota.
Reuters reported on June 3 that there was talk of possible quota reductions, with sources indicating a potential decrease of up to 1 million barrels per day.
Sources cited by The Wall Street Journal said that Saudi Arabia was engaging in discussions with African nations to press for lower production quotas as of June 3.
Under the agreed framework, OPEC+ members reduced oil output by 2 million barrels per day by the end of 2023. In April, several members, including Saudi Arabia, announced a voluntary cut exceeding quotas by around 1.16 million barrels per day starting in May. Russia has been trimming output by 500,000 barrels per day since March, aligning with the broader effort to manage supply and price stability. Reuters and other major outlets have tracked these developments, noting the strategic calculations behind the changes and how they interact with market dynamics and geopolitical considerations.