Upcoming OPEC+ Meeting to Discuss Oil Output Cuts
Scheduled OPEC+ Meeting
Analysts and OPEC+ sources anticipate that Saudi Arabia, Russia, and other OPEC members will convene online on Thursday to consider further adjustments to the existing agreement, which restricts oil supply until 2024. The purpose of these potential changes is to provide support to the market.
Reason for Delay
The November 26 meeting was postponed, reportedly due to a disagreement over output levels for African producers. However, the group has made progress towards resolving this issue in recent discussions.
Current Agreements
In June, OPEC+ extended oil output cuts of 3.66 million barrels per day until the end of 2024. Additionally, Saudi Arabia and Russia implemented voluntary cuts in output, with Saudi Arabia committing to a 1 million-bpd reduction until December 2023 and Russia reducing oil exports by 300,000 bpd until the end of 2023. The group aims to produce a combined 40.58 million bpd in 2024 after adjusting baselines and targets for several countries compared to current levels.
Possible Changes
Speculations suggest that OPEC+ might consider a collective further reduction during the upcoming meeting. Furthermore, targets for Nigeria, Angola, and Congo may be revised based on reviews by external analysts. There is also speculation that Saudi Arabia may extend its voluntary cut into the first quarter of 2024.
Production and Targets
The table below provides an overview of OPEC+ production and targets for 2023-2024 in million barrels per day:
– Algeria: 0.96 (2023) and 0.959 (2024 target)
– Angola: 1.15 (2023) and 1.28 (2024 target)
– Congo: 0.26 (2023) and 0.276 (2024 target)
– and so on…
These figures demonstrate the production and target levels set for various OPEC+ members over the next few years.
By Alex Lawler
LONDON – Saudi Arabia, Russia, and other OPEC members are expected to meet online on Thursday to consider further changes to an agreement that already limits oil supply until 2024. The purpose of these potential changes is to provide support to the market.
The November 26 meeting was postponed due to a disagreement over output levels for African producers. However, the group has made progress towards resolving this issue in recent discussions.
In June, OPEC+ extended oil output cuts of 3.66 million barrels per day until the end of 2024. Additionally, Saudi Arabia and Russia implemented voluntary cuts in output, with Saudi Arabia committing to a 1 million-bpd reduction until December 2023 and Russia reducing oil exports by 300,000 bpd until the end of 2023. The group aims to produce a combined 40.58 million bpd in 2024 after adjusting baselines and targets for several countries compared to current levels.
Speculations suggest that OPEC+ might consider a collective further reduction during the upcoming meeting. Furthermore, targets for Nigeria, Angola, and Congo may be revised based on reviews by external analysts. There is also speculation that Saudi Arabia may extend its voluntary cut into the first quarter of 2024.
The table below provides an overview of OPEC+ production and targets for 2023-2024 in million barrels per day:
– Algeria: 0.96 (2023) and 0.959 (2024 target)
– Angola: 1.15 (2023) and 1.28 (2024 target)
– Congo: 0.26 (2023) and 0.276 (2024 target)
– and so on…
These figures demonstrate the production and target levels set for various OPEC+ members over the next few years.
