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OPEC+ members extend oil output cuts to second quarter

OPEC+ members, led by Saudi Arabia and Russia, have agreed to extend voluntary oil supply cuts of 2.2 million barrels per day into the second quarter, providing further assistance to the market despite concerns about global growth and rising output outside the group.

Saudi Arabia, the de facto leader of the Organisation of Petroleum Exporting Countries (OPEC), said that it will extend its voluntary reduction of 1 million barrels per day (bpd) until the end of June, leaving its output at roughly 9 million bpd.

Russia, which heads OPEC+, will reduce oil output and exports by an additional 471,000 bpd in the second quarter. Russian Deputy Prime Minister Alexander Novak announced new numbers indicating that output cuts will account for an increasing amount of the plan.

Rising geopolitical tensions and Houthi attacks on Red Sea shipping have boosted oil prices in 2024, however concerns about economic development have also impacted. While OPEC+ was largely expected to maintain the cutbacks, Russia’s announcement may raise prices even more.

On Sunday,March 3, 2023, OPEC+ countries declared individual cutbacks, and OPEC subsequently released a statement confirming the 2.2 million bpd total.

Source: Energy Ghana