Production Cuts
OPEC, allies extend voluntary production cuts until end November
This story was originally published at 14:46 IST on 6 September 2024
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MUMBAI – Several members of the Organization of the Petroleum Exporting Countries and its allies have agreed to extend their voluntary production cuts of crude oil, amounting to 2.2 mln barrels per day, till the end of November, according to an official statement by the cartel.
The eight members of OPEC and its allies, Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman highlighted their collective resolve to ensure full compliance with the voluntary production cuts in a virtual meeting on Thursday, it said. The production cuts will be gradually phased out on a monthly basis starting Dec 1 with the flexibility to pause or reverse the adjustments as necessary, it said.
Iraq and Kazakhstan have overproduced crude oil since January this year, the report said. During the OPEC Secretary General's visits in late August, both the countries provided details on the immediate measures they are implementing to achieve full conformity with the required production levels and to meet their compensation schedules for August and September. These measures include advancing field maintenance plans and reducing production and delaying spot sales for August. The two countries also committed to adjust compensation plans for any overproduced volumes in August, it said.
OPEC and its allies had earlier announced additional voluntary cuts in April and November 2023.
At 1305 IST, the price of West Texas Intermediate crude oil was $69.43 per bbl and that of Brent oil on the Intercontinental Exchange was $72.98 per bbl, both up 0.4%. End
US$1 = 83.93 rupees
Reported by Ashutosh Pati
Edited by Vidhi Verma
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