OPEC+ to Balance Oil Market

  • 04 Mar 2024

Recently, OPEC+, led by Saudi Arabia and allied producers deepen voluntary cuts to crude supply, aiming to balance the oil market amid rising prices.

Key Points

  • Saudi Arabia Leads Extension: Saudi Arabia extends its 1 million barrels a day cut through Q2 2024, aiming to stabilize oil prices.
  • Russia Joins with Additional Cuts: Russia announces an extra 471,000 barrels per day reduction for Q2, contributing to market stability.
  • Continued Reductions across OPEC+: Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman continue cuts to balance oil market demand.
  • Market Balancing Strategy: OPEC+ aims to gradually return volumes based on market conditions to address fluctuating oil prices.
  • Stable Prices despite Increase: Brent crude price rises but remains modest, in line with expectations, amid geopolitical tensions.