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Saudi Arabia will cut its oil production by a million barrels a day, and some extend the cuts to 2024. You want OPEC plus higher oil prices. Saudi Arabia will make a further voluntary reduction in oil production while others, including Russia, will continue to make voluntary cuts until 2024, instead of the current re-evaluation plan at the end of 2023. As of July, Saudi Arabia will cut production by 1 million barrels per day, which is currently only for one month, but the Saudi Minister of Energy said it could be extended (most likely based on the price location). For other OPEC members, the 2024 baselines have been adjusted, which means fewer ceilings for Angola and Nigeria. Overall, the target of 2024 is now 1.4 million barrels per day below the current level. Much in the market is already seeing crude oil stocks shrunk significantly in the second half as the driving season recovers, and aviation demand and the growth of Asian economies improve. The next OPEC meeting had been scheduled for November 26, but the Group had always maintained the flexibility to call new meetings. Follow us on the free Telegram channel from here. |
