Oil fell after OPEC+ decided to cut production

On Thursday, there was a significant drop in oil prices due to the ongoing OPEC+ conference.

At the start of the day, stock prices rose, reaching their highest levels in over three weeks.

In 2024, OPEC+ countries will not be making any additional reductions in their oil production.

The Russian Federation will decrease oil supplies by an additional 200 thousand barrels per day.

At the OPEC+ meeting held on Thursday, the terms of the deal concluded on June 4, 2023 were confirmed by the OPEC+ countries, as stated in a press release.

In order to keep the oil market stable, a group of OPEC+ nations have agreed to voluntarily cut their oil production by 2.2 million barrels per day (b/d) during the first three months of 2024.

Depending on the market situation, OPEC+ countries will gradually reintroduce oil production volumes to the global market following the first quarter.

Saudi Arabia will maintain their oil production at 9 million b/d by decreasing it by an additional 1 million b/d, while Kazakhstan will reduce their production to 1.468 million b/d by decreasing it by 82 thousand b/d.

Russia will reduce the export of oil and petroleum products by an additional 200 thousand barrels per day, bringing the total reduction to 500 thousand barrels per day. This includes 300 thousand barrels per day of oil and 200 thousand barrels per day of fuel.

RG has noted that OPEC+ countries will not be increasing their oil production cuts any further in the year 2024.

Alexander Novak, Russian Deputy Prime Minister, stated in an interview after the OPEC+ meeting that a decrease in production by some OPEC+ countries in the first quarter of 2024 will be 2.2 million bpd in order to maintain equilibrium in the oil market during the period of reduced demand.

Next year, Brazil will become a member of OPEC+, however, it will not be part of the deal to reduce output. According to the most recent IEA report, the nation's oil production is currently at 3.7 million barrels per day.