Several OPEC+ members announced Sunday 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 totaling 2.2 million barrels per day (bpd)
for the second quarter of 2024.
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
totaling about 2.2 million bpd for the first quarter of this year.
Saudi Arabia's Ministry of Energy said
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