Friday, December 8, 2023

Gulf countries extend the reduction of crude oil supply for another year after OPEC + pact

United Arab Emirates (UAE), Iraq and Oman today announced the extension of their voluntary reduction in oil production until the end of 2024, as well as indicated by Saudi Arabiathus fulfilling the decision taken this Sunday by the ministers of Oil and Energy of the OPEC+ alliance, made up of 23 countries.

The UAE will reduce crude oil production by 144,000 barrels a day until the end of next year, reported the Emirati Ministry of Energy it’s a statement.

“We understand the needs of the market and the OPEC+ it is unified in this sense (…). We are experiencing a transition phase in the energy sector that requires more investment,” said the minister of the Emirati department, Suhail Al Mazroui in the note.

For its part, Iraq “will extend its voluntary reduction of 211,000 barrels per day (mbd) until the end of December 2024, as a precautionary measure, in coordination with the countries participating in the OPEC+ agreement,” the Iraqi Oil Ministry said in a note. published by the official news agency INA.

Oman follows in the footsteps of its neighbors and will reduce oil production by 40,000 barrels per day during the same period, according to a statement.

Previously, Saudi Arabia had already announced the reduction of its crude supply by one million barrels as of July 1, a “voluntary” cut that it will implement in addition to continuing to comply with the pumping limitations to which it has committed in OPEC+.

The aforementioned additional and “voluntary” cut by Saudi Arabia thus constitutes the third attempt in six months to make the “black gold” withdrawing barrels from the market.

The cabinets of each country announced it at the end of the meeting held this Sunday in Vienna, where all the members of the OPEC+ alliance reached a commitment on the internal distribution of the production quota as of January 1, 2024, which will leave in 40.46 million barrels per day (mbd) the group’s total supply.

The upcoming ministerial conference of the Organization of the Petroleum Exporting Countries (OPEC) and its ten allies, led by Russiahas been convened for next November 26, according to the final declaration of this ministerial meeting.

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