In a significant development, member countries of OPEC+ have come to a consensus on a new output target of 40.46 million barrels per day (bpd) beginning in 2024. The agreement, outlined in a statement issued by the group, reflects their collective commitment to maintaining stability in the oil market.
Alongside this decision, Saudi Arabia’s energy ministry has announced the extension of its voluntary production cut of 500,000 bpd until the end of December 2024. This extension, coordinated with select OPEC+ participants, follows discussions held during the recent OPEC+ meeting.
OPEC+ showcases its collective determination to effectively manage oil production
Additionally, the ministry has revealed an additional voluntary reduction of 1 million bpd for the month of July, with the possibility of further extensions. Consequently, Saudi Arabia’s production will be adjusted to 9 million bpd, resulting in a total voluntary cut of 1.5 million bpd throughout July, according to reports from the Saudi Press Agency.
The ministry has emphasized that this supplementary voluntary cut is a proactive measure aimed at supporting the precautionary efforts of OPEC+ member countries in maintaining oil market stability and equilibrium.
By establishing the new output target and extending the voluntary cut, OPEC+ showcases its collective determination to effectively manage oil production levels and address evolving market dynamics.
