OPEC Extends Production Cuts 2Q024

Several OPEC+ countries have announced an extension of voluntary cuts totaling 2.2MMb/d for 2Q24, aiming to support oil market stability. Russia joined the production cuts. The decision, made on March 3, extends the production cuts until the end of 2Q24, according to the OPEC Secretariat.

These voluntary reductions are calculated from the 2024 required production level established during the 35th OPEC Ministerial Meeting held on June 4, 2023. They are in addition to previously announced cuts, initially made in April 2023 and later extended until the conclusion of 2024.

The countries announcing these additional voluntary cuts include Saudi Arabia (1MMb/d), Iraq (220Mb/d), United Arab Emirates (163Mb/d), Kuwait (135Mb/d), Kazakhstan (82/Mb/d), Algeria (51Mb/d), and Oman (42Mb/d). Following this period, these cuts will gradually be returned, contingent upon market conditions, to support market stability.

Russia has also committed to voluntary production cuts, totaling 471Mb/d for the same period. These cuts will come from both crude oil production and exports:

- In April, 350Mb/d from production and 121Mb/d from exports

- In May, 400Mb/d from production and 71Mb/d from exports

- In June, a total of 471Mb/d from production

Russia's voluntary production cut is added to a previous cut of 500Mb/d announced in April 2023, which has been extended until the end of December 2024. The export reduction will be based on the average export levels from May and June of 2023.