OPEC+ Agrees on Riyadh’s Goal to Cut Oil Supply Further into 2024

OPEC and its allies agreed on Thursday to cut output voluntarily for early next year, which is now approaching two million barrels per day (bpd) after the latest agreement. The deal was said to be fulfilling Riyadh’s goal for this meeting to further tighten global supply for what it calls “stabilization” of oil prices.

Organization of Petroleum Exporting COuntries and its allies, collectively known as OPEC+, had been pressured by Saudi Arabia, the largest producer of the group, to make an extra cut to restrain output as oil prices continued to fall in November, down more than 10% from September high due to surplus in supply and gloomy demand in the global. 

The group produces around 43 million bpd, which already reflects a 5-million-bpd cut of which 3.66 million bpd are from the group, while Saudi Arabia volunteered for an additional 1 million bpd cut, along with Russia for around 400,000 bpd of production cut. 

According to several sources, the new voluntarily cut by the group is approaching 2 million bpd as Riyadh extended its supply cut further. Russia will up its tightening to 500,000 bpd and other allies will also contribute as well.