Several OPEC+ countries announce extension of additional voluntary cuts

The OPEC Secretariat has noted the announcements of several OPEC+ countries extending additional voluntary cuts of 2.2 million barrels per day, aimed at supporting the stability and balance of oil markets.

These voluntary cuts are calculated from the 2024 required production level as per the 35th OPEC Ministerial Meeting held on June 4, 2023, and are in addition to the voluntary cuts previously announced in April 2023 and later extended until the end of 2024, according to the message posted on the OPEC’s website.

These additional voluntary cuts are announced by the following OPEC+ countries: Saudi Arabia (1,000 barrels per day); Iraq (220,000 barrels per day); United Arab Emirates (163,000 barrels per day); Kuwait (135,000 barrels per day); Kazakhstan (82,000 barrels per day); Algeria (51,000 barrels per day); and Oman (42,000 barrels per day) for the second quarter of 2024. Afterwards, to support market stability, these voluntary cuts will be returned gradually subject to market conditions.

The above will be in addition to the announced voluntary cut by the Russian Federation of 471,000 barrels per day for the same period (second quarter of 2024), which will be from crude oil production and exports as follows:

In April 350,000 barrels per day from production and 121,000 barrels per day from exports.

In May 400,000 barrels per day from production and 71,000 barrels per day from exports.

In June 471,000 barrels per day totally from production.

Azerbaijan's oil production quota for 2024 is 551,000 barrels per day.

The Organisation of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely the Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organisation.

These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975), Angola (2007), Equatorial Guinea (2017) and Congo (2018).

Currently, the Organisation has a total of 12 Member Countries.