Daily Management Review

Bloomberg: OPEC+ countries extend oil supply cuts until the end of June


Delegates from the member states of OPEC+ have decided to prolong the cutback in oil exports by 2 million barrels per day (bpd) until the end of June, according to a report by Bloomberg.

Bureau of Land Management
Bureau of Land Management
The newspaper reports that the reason why the OPEC+ countries' January supply decrease did not achieve the projected quantities of 2 million barrels per day was because Kazakhstan and Iraq exported several hundred thousand barrels per day more than was allowed by quotas. According to the agency reports, these nations committed to adhering to the enforced regulations more closely and making up for any overproduction.

The nations of OPEC+ decided to prolong their oil output curbs at the end of November 2023. Saudi Arabia committed to cutting oil exports by one million barrels per day, Russia upped the bar to 500 thousand barrels per day and other members of the organization committed to cutting oil exports by 500 thousand barrels per day as a group. The contract is in effect through March 2024.

According to a report released by the International Energy Agency (IEA) on February 15th, the average global oil supply in January 2024 was 101.45 million barrels per day, a steep reduction of 1.4 million barrels per day. According to the IEA, the drop in supplies happened in the context of fresh voluntary export cuts by OPEC+ nations and disruptions in North American oil production brought on by extremely cold weather.

source: bloomberg.com