OPEC+ Considers Extending Oil Production Cuts Through Q2 2024
Decision expected in early March amid concerns about slowing demand and potential surplus.
Key points:
- OPEC+ to decide in March whether to extend current oil production cuts into the second quarter of 2024.
- Cuts currently total 1.9 million barrels per day (bpd), led by Saudi Arabia’s 1 million bpd reduction.
- Decision comes as oil prices hover near $80/bbl despite Middle East conflicts and potential supply disruptions.
- Move aims to prevent a global oil surplus amid slowing demand growth and record U.S. shale production.
- International Energy Agency predicts a surplus next quarter if cuts are relaxed.
- Early March assessment expected due to OPEC+ policy of setting production levels a month in advance.
Additional details:
- Seven OPEC+ members, including Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, are involved in the cuts.
- The decision will likely be announced through separate statements by member countries rather than a joint communique.
Possible implications:
- Extended cuts could support oil prices, benefiting producers but potentially raising costs for consumers.
- Decision will be closely watched by oil markets and could impact global energy prices.
