Several members of the Organisation of the Petroleum Exporting Countries and its allies, OPEC+, have announced a voluntary cut of 2.2 million barrels per day for the second quarter of 2024.
OPEC, in a statement, said the aim was to support the stability and balance of oil markets.
Nigeria is not among the countries said to have volunteered to cut daily oil production, having been grappling with dwindling output due to oil theft.
“The OPEC Secretariat 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,” the statement said.
While Saudi Arabia was said to have volunteered to cut its daily oil production by 220,000bpd from April to June, Russia is cutting 471,000bpd within the same period.
The organisation said, “These additional voluntary cuts are announced by the following OPEC+ countries: Saudi Arabia, 1,000bpd; Iraq, 220,000bpd; United Arab Emirates, 163,000bpd; Kuwait, 135,000bpd; Kazakhstan, 82,000bpd; Algeria, 51,000bpd; and Oman, 42,000bpd for the second quarter of 2024.
“Afterwards, in order to support market stability, these voluntary cuts will be returned gradually subject to market conditions.”
The Russian Federation has announced a voluntary of 471,000bpd for the same period, which will be from crude oil production and exports as follows:
“In April, 350,000bpd from production and 121,000bpd from exports.
“In May 400,000bpd from production and 71,000bpd from exports.
“In June, 471,000bpd totally from production,” it was said.
According to OPEC, Russia’s voluntary production cut is in addition to the voluntary cut of 500,000bpd previously announced in April 2023, which extends until the end of December 2024.
“The export cut will be made from the average export levels of the months of May and June of 2023,” it stated.
The cut brought about a slip in the prices of crude oil at the international market.
Global benchmark Brent slipped 0.05 per cent to $83.52 a barrel on Monday, while the United States West Texas Intermediate futures traded down 0.19 per cent at $79.82 per barrel.
