Opec+ Extends Oil Output Cuts To 2024

Oil-producing countries in OPEC+ decided to continue reducing oil output next year. The decision comes as oil prices are decreasing and there is a possibility of excess supply.

On Sunday, the oil cartel met in Vienna. The members of the cartel, including Saudi Arabia, Iraq, and Russia, reportedly agreed to cut output by 1.4m barrels a day.

Sources from OPEC+ informed Reuters that the group would probably continue with the same policy for 2023. They would also have further restrictions in output in 2024 if they reached new production baselines that would determine the cuts and quotas for members.

Saudi Arabia will reduce its oil output by 500,000 barrels per day. It is a voluntary reduction but the start date is uncertain.

Opec+ is a group that includes the Organisation of the Petroleum Exporting Countries and Russia. They produce 40% of the world's crude oil. This means that their decisions affect oil prices.

The group reached an agreement. They took more than six hours to start formal talks. The reason was members talking about production baselines.

A report by Bloomberg said there was a delay. The delay was because powerful group members and African countries didn't agree on how to measure cuts. Ministers talked in side meetings to sort it out.

Saudi Arabia is leading a group. The group wants Nigeria and Angola to produce more. The group thinks Nigeria and Angola should set realistic targets.

Reports said that the United Arab Emirates was looking to increase its baseline. This would show the country's growing production capacity.

In April, oil prices went up because OPEC+ said they were going to cut production. They said they would reduce their output by 1 million barrels per day, which is 3.7% of global demand. This is in addition to their plan to keep reducing production by 2 million barrels a day until 2023.

Russia said they will continue to reduce their oil production by 500,000 barrels a day until the year ends. This was announced at the same time.

Oil prices went up by $9 (£7) a barrel in April but then dropped again due to worries about global economic growth and demand. Last Friday, the global crude benchmark Brent was at $76 a barrel.

The upcoming Opec meeting happens on November 26th. Vienna is where it will take place.