In a concerted effort to maintain stability and balance in global oil markets, several OPEC+ members have declared the extension of oil output cuts into the second quarter of 2024. OPEC+ is a coalition of oil-producing nations, including members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies.
OPEC officially acknowledged on Sunday night that it had taken note of the declarations made by several OPEC+ countries regarding the extension of voluntary cuts, amounting to 2.2 million barrels per day (bpd) for Q2 2024. These reductions stem from the quotas established during the OPEC+ ministerial meeting in June 2023. They are in addition to the voluntary output cuts previously announced in April of the previous year, which were later extended until the close of 2024.
Key contributors to these efforts include Saudi Arabia, which, as the de facto leader of OPEC, confirmed an extension of its voluntary production cut of 1 million bpd until the end of June, maintaining an approximate oil production level of 9 million bpd during the second quarter. Russia, a prominent OPEC ally, also declared voluntary cuts of 471,000 bpd for Q2, a slight reduction from its Q1 cuts of 500,000 bpd.
Several other OPEC+ members, including Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, have similarly prolonged their voluntary production cuts into the second quarter. However, the OPEC statement highlighted that these voluntary cuts would be gradually restored, contingent on market conditions, to bolster market stability post-June.
A ministerial meeting among OPEC+ countries is scheduled for June to further discuss production targets, indicating ongoing collaboration to navigate the evolving dynamics of the global oil industry.