Some OPEC+ members agree to extend voluntary cuts to Q2 - sources

Some OPEC+ members agreed on Sunday to extend voluntary first quarter oil output cuts into the second quarter, sources said, providing additional support to the market amid concern over global economic growth. OPEC+ in November agreed to voluntary cuts totalling about 2.2 million barrels per day (bpd) for the first quarter, led by Saudi Arabia rolling over its own voluntary cut.


Reuters | Updated: 03-03-2024 21:32 IST | Created: 03-03-2024 21:04 IST
Some OPEC+ members agree to extend voluntary cuts to Q2 - sources
Representative image Image Credit: ANI

Some OPEC+ members agreed on Sunday to extend voluntary first quarter oil output cuts into the second quarter, sources said, providing additional support to the market amid concern over global economic growth.

OPEC+ in November agreed to voluntary cuts totalling about 2.2 million barrels per day (bpd) for the first quarter, led by Saudi Arabia rolling over its own voluntary cut. OPEC+ has implemented a series of output cuts since late 2022 to support the market amid rising output from the United States and other non-member producers and worries over demand as major economies grapple with high interest rates.

Oil prices have found support from rising geopolitical tensions due to attacks by the Iran-aligned Houthi group on Red Sea shipping, although concern about economic growth and high interest rates has weighed. Brent futures for May settled $1.64 higher, or 2%, at $83.55 a barrel on Friday. Sources told Reuters last week OPEC+ would consider extending oil output cuts into the second quarter, with one saying it was "likely".

OPEC+ member countries announce the cuts individually. Kuwait said it would cut its oil output by 135,000 barrels a day (bpd) through June, while Algeria will cut its output by 51,000 bpd. Oman said it would curb output by 42,000 bpd.

The oil demand outlook is uncertain for this year. OPEC expects another year of relatively strong demand growth of 2.25 million bpd, led by Asia, while the International Energy Agency expects much slower growth of 1.22 million bpd.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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