Several member countries of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, have decided to significantly reduce their oil production in the first quarter of 2024. The group announced a voluntary collective cutback of 2.2 million barrels per day (bpd).
According to Philippines News Agency, the additional voluntary cuts include major contributions from Saudi Arabia (1 million bpd), Iraq (223,000 bpd), the United Arab Emirates (163,000 bpd), Kuwait (135,000 bpd), Kazakhstan (82,000 bpd), Algeria (51,000 bpd), and Oman (42,000 bpd). Russia also committed to a sizeable reduction of 500,000 bpd, which includes 300,000 bpd of crude oil and 200,000 bpd of refined products, based on its average export levels from May and June 2023. These voluntary reductions will be effective from January to March 2024 and are subject to gradual reinstatement depending on market conditions to ensure stability. This decision follows the 36th OPEC and non-OPEC Ministerial Meeting, where the group reaffirmed its existing collective production cuts of 3.6 million bpd until the end of 2024, which includes a 2 million bpd cut implemented in October 2022 and an ongoing 1.6 million bpd reduction since May.
