Monday, 01 April 2024 08:34

Production cut by OPEC+ does not affect market

Several OPEC+ countries will continue voluntarily reducing their oil production by a total of 2.2 mln barrels per day (bpd) in the second quarter.

                                                                                                                                       

As reported by Azerbaycan 24 with reference to TASS, most of the countries have maintained previous parameters of production cuts. Russia and Iraq made slight changes into their cuts volumes.

                                                                             

Following the November 30 OPEC+ summit, some member countries of the cartel decided on additional voluntary cuts - by 2.2 mln bpd in the first quarter of 2024 - in oil output  to achieve a balance in the market. Early in march the validity of the measure was extended for the second quarter.


The volume of cuts for April-June remains almost at the same level - 2.17 mln bpd. As in the first quarter, Saudi Arabia will lower output by 1 mln bpd, United Arab Emirates (UAE) (by 163,000 bpd), Kuwait (by 135,000 bpd), Kazakhstan (by 82,000 bpd), Algeria (by 51,000 bpd) and Oman (by 42,000 bpd).


On Thursday the price for West Texas Intermediate rose by 2.05% to $83.02 while the price for Brent settled at $87.48, rising 1.61%.



This year the price for WTI has risen by 14%. Fears about the sharp oil price increase have not been realized as on Monday Brent and WTI prices stand at $87.28 per barrel (rise by 0.41%) and $83.51 per barrel (rise by 0.41%) respectively.

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