OPEC+ rolls out production cuts into 2024

OPEC+ members have agreed to oil production cuts totaling 2.2 million bopd for early 2024, the oil and gas organisation announced on Thursday.

The cuts are being calculated from the 2024 required production levels decided at a meeting held in June 2023, and are in addition to voluntary cuts announced in April 2023 and later extended to 2024.

Under the agreement, eight members will cut their production levels in Q1 2024.

Under the ruling Saudi Arabia will extend its cuts of 1 million bopd and Russia will curb production by 300,000 bopd and exports by 200,000 bopd.

Other members will also cut production, including Iraq by 233,000 bopd, the UAE by 163,000 bopd, Kuwait by 135,000 bopd, Kazakhstan by 82,000 bopd, Algeria by 51,000 bopd and Oman by 42,000 bopd.

The group members’ output is currently around 43 million bopd, with cuts of around 5 million bopd.

Earlier in November, the International Energy Agency predicted the oil market could shift into a surplus in 2024.

Prices of oil have fallen from a high in September 2023 of around USD 98 per barrel.