As part of the agreements in the OPEC+ format, the Russian oil production quota will decrease by 650,000 barrels per day in 2024. This decision was made at a meeting of representatives of the OPEC+ countries in Vienna on June 4, the Russian service of Radio Liberty reports.
Russian Vice Prime Minister Oleksandr Novak said that Russia also does not abandon its voluntary commitment to extract 500,000 barrels of oil per day less than the quota. In 2023, the Russian quota is 10,478 thousand barrels per day, in 2024 it will be reduced to 9,828 thousand, and taking into account the voluntary reduction - to 9,328 thousand.
At the same time, the quota of Saudi Arabia, the largest OPEC country, for 2024 is 10.478 million barrels. In general, the OPEC+ countries have agreed to reduce next year the level of oil production by approximately 1.5 million barrels per day, not taking into account voluntary reduction commitments undertaken by individual countries. The purpose of such reductions is to stop the decline in oil prices on the world market.
In April, several OPEC+ members agreed to voluntarily cut output by more than one million barrels per day, a move that briefly supported prices but did not spark a sustained recovery. Oil prices have fallen about 10 percent since the April cuts were announced, with Brent crude falling to nearly $70 a barrel, a level it has not traded below since December 2021.
Since Western sanctions hit Moscow, Russia has been supplying oil to India and China while Asian giants gobble up cheap oil.
Saudi Arabia will reduce the volume of oil supplies to the world economy by 1 million barrels per day.
Oil prices rose after Saudi Arabia announced a supply cut.