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Fuga Bluemarine crude oil tanker lies at anchor near the terminal Kozmino in Nakhodka Bay. REUTERS/Tatiana Meel

Fuga Bluemarine crude oil tanker lies at anchor near the terminal Kozmino in Nakhodka Bay near the port city of Nakhodka, Russia, December 4, 2022. REUTERS/Tatiana Meel

Some OPEC+ Members Agree To Extend Oil Output Cuts

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March 3, 2024

By Maha El Dahan and Alex Lawler

DUBAI, March 3 (Reuters) – Some OPEC+ members agreed on Sunday to extend voluntary oil output cuts into the second quarter, sources said, giving extra support to the market amid concerns 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 LCOc1 futures for May settled $1.64 higher, or 2%, at $83.55 a barrel on Friday.

Sources told Reuters last week that OPEC+ would consider extending oil output cuts into the second quarter, with one saying it was “likely.”

OPEC+ member countries announce the cuts individually. 

Russia will cut oil production and exports by an additional 471,000 barrels per day (bpd) for the second quarter of 2024, in coordination with some OPEC+ participating countries, Russian Deputy Prime Minister Alexander Novak said on Sunday.

Kuwait said it would cut its oil output by 135,000 bpd through June, while Algeria will curb its output by 51,000 bpd and Oman will reduce 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. 

(Reporting by Maha El Dahan and Alex Lawler; Writing by Yousef Saba; Editing by Jan Harvey, Nick Macfie and Alexander Smith)

(c) Copyright Thomson Reuters 2024.

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