OPEC+ Announces Agreement to Cut Oil Output by Nearly 2 Million bpd, Sources Report

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FILE PHOTO: OPEC’s logo is seen in this illustration taken, October 8, 2023. REUTERS/Dado Ruvic

Producers Discussing 2024 Output

OPEC+ producers held a virtual meeting to discuss 2024 output, with Saudi Arabia and Russia among those agreeing to substantial cuts. The meeting was initially postponed from November 26 due to disagreements.

According to delegates, the latest agreement will involve cuts approaching 2 million bpd, with Saudi Arabia extending its voluntary cut of 1 million bpd in place since July. Russia is set to cut 500,000 bpd, and other members will also contribute cuts.

Benchmark Brent crude futures surged on the news, with analysts predicting a potential extension of cuts through the first quarter of 2024 from Saudi Arabia and Russia.

Despite concerns over weaker economic growth and an expected supply surplus, OPEC+ has been facing difficulties in reaching agreements. The delay in the meeting was reportedly caused by disagreements over output quotas for African producers.

The meeting coincides with the UN’s COP28 climate summit hosted by OPEC member the United Arab Emirates.

Reporting by Alex Lawler, Olesya Astakhova, Maha El Dahan, and Ahmad Ghaddar; editing by Jason Neely

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