Opec+ Agrees To An Additional Supply Cutback Of 1 Million Barrels Per Day

 

Reuters: OPEC+ agrees to voluntary oil output cuts, invites Brazil to join  

OPEC+ announces no new group cut target for 2024 

London/Moscow/Dubai: OPEC+ oil producers on Thursday agreed to voluntary output cuts approaching 2 million barrels per day (bpd) for early next year led by Saudi Arabia rolling over its current voluntary cut, delegates told Reuters. 

 Saudi Arabia, Russia and other members of OPEC+, who pump more than 40 per cent of the world's oil, failed to agree a group cut at a virtual meeting on Thursday but members did go along with voluntary cuts. 

Oil prices fell after rising by more than 1 per cent earlier in the session after OPEC+ producers agreed to the cuts. Benchmark Brent crude for February futures were down 1.6 per cent to $81.52 a barrel at 1747 GMT. 

The front-month January contract is due to expire on Thursday. OPEC+ also invited Brazil, a Top 10 producer, to become a member of the group. The country's energy minister said it hoped to join in January.  

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Update #1: Opec+ members extend voluntary output cuts amid crude demand concerns (National Post)  

Update #2: OPEC+ Production Cuts Fail to Convince Oil Traders Amid Lack of Detail (Bloomberg)  

WNU Editor: All of these production cuts are voluntary. My prediction still holds that it will be next year that we are going to see real production cuts to keep the price at the current levels.