Volatile oil market

Shutterstock

Volatile oil market 

Opec+ maintains level – cuts production next year 

 

Opec+ has agreed to reduce oil production to 40.46 million barrels per day from the turn of the year, the organization writes in a statement. This means a reduction of 1.4 million barrels per day from the current level, writes Reuters.  

 

The new level applies throughout 2024. Ahead of the meeting, sources said there were hopes to cut production by another million barrels even now. 

 

Saudi Arabia also promises to voluntarily cut output by another million barrels per day in July, a measure that could be extended. Something that is described as a compromise solution. At the same time, Russian Deputy Prime Minister Aleksandr Novak confirms that the country will increase its voluntary reduction by half a million barrels next year, writes Reuters. 

 

Oil is down roughly 20 percent since Opec began cutting production in October last year. Analysts expect that oil will continue to trend lower, writes the Wall Street Journal. 

 

Abdulaziz bin Salman. Archive image. Ronald Zak / AP 

 

Volatile oil market 

Saudi Arabia surprises: "Do the little extra"  

 

Saudi Arabia once again managed to surprise by voluntarily reducing oil production by another million barrels per day in July, writes Bloomberg. 

 

- We wanted to do the little extra, says Energy Minister Prince Abdulaziz bin Salman, according to the news agency.  

 

The voluntary reduction in July may then be extended. And next year, the country's previous voluntary reduction of half a million barrels per day will be extended.  

 

The winner of the settlement was the United Arab Emirates, which received a larger quota, at the expense of African countries that have not used their entire quota, writes Bloomberg.