Vienna (EFE)
In addition, they reached a commitment on the internal distribution of the production quota as of January 1, 2024, which will leave the group’s total offer at 40.46 million barrels per day (mbd), according to the final statement of the meeting. ministerial held this Sunday.
In this way, both the 2 mbd cut adopted in October 2022, as well as a large part of the voluntary reductions announced in April, for a total of 1.66 mbd, remain in force, which until now have not had the desired effect of raising the crude oil price to more than 80 dollars/barrel.
The barrel of Brent oil ended on Friday at 76.08 dollars and that of Texas intermediate oil (WTI) was at 71.74 dollars, prices very distant from those above 100 dollars/barrel that were a year ago.
The next ministerial conference of the Organization of the Petroleum Exporting Countries (OPEC) and its ten allies, led by Russia, will take place on November 26.
Saudi Arabia will reduce its production by 1 million barrels
Saudi Arabia will reduce its crude supply by one million barrels per day (mbd) as of July 1, a “voluntary” cut that it will implement in addition to continuing to comply with the pumping limitations to which it has committed in OPEC+.
This was announced by the Saudi Minister of Energy, Abdelaziz bin Salman, at a press conference in Vienna after participating in a conference of the Organization of the Petroleum Exporting Countries (OPEC) and its ten allies, including Russia.
“A cut of one million barrels per day from (next) July, which can be extended,” said the delegate from the Wahhabi kingdom.
At the meeting of the so-called OPEC+ alliance (OPEC and allies) it was agreed to extend for one more year, until the end of 2024, the current cuts in the joint pumping of the group of 23 countries, which were adopted in two phases, one in October and another in April, and they were going to expire on December 31.
However, these measures did not have the desired effect of raising the price of crude oil to more than 80 dollars/barrel.
The aforementioned additional and “voluntary” cut by Saudi Arabia thus constitutes the third attempt in six months to make “black gold” more expensive by withdrawing barrels from the market.
Agreement on the internal distribution of the production quota
On the other hand, the ministers said that they have reached a compromise on the internal distribution of the production quota as of January 1, 2024, which after a slight adjustment will leave the total supply at 40.46 million barrels per day (mbd). of the group, according to the final declaration of the ministerial meeting held this Sunday.
The barrel of Brent oil ended on Friday at 76.08 dollars and that of Texas intermediate oil (WTI) was at 71.74 dollars, prices very distant from those above 100 dollars/barrel that were a year ago.
The next ministerial conference of the Organization of the Petroleum Exporting Countries (OPEC) and its ten allies, led by Russia, has been convened for next November 26.