The oil production quotas for OPEC + countries over the next year (2024) are witnessing a noticeable discrepancy, after the coalition ministers decided during their meeting today, Sunday (June 4, 2023), to amend the base month – through which the quotas are calculated, whether by decrease or increase – in the period From January 1 to December 31, 2024.
The alliance stated – in a press statement seen by the specialized energy platform – that its decisions came in light of the continued commitment of member states to achieving stability in the oil market, and to provide long-term directives to the market, in line with the successful approach of being cautious, proactive and preventive.
The Kingdom of Saudi Arabia and 8 other countries also announced that their additional voluntary reduction, which they began implementing in May 2023, will extend until the end of 2024, instead of the end of this year.
The next ministerial meeting of the OPEC+ alliance is scheduled to be held on November 26, 2023.
Oil production quotas for OPEC + countries in 2024
According to the statement of oil production quotas for OPEC+ countries, which was seen by the specialized energy platform, in addition to the extension of the voluntary additional cut, oil production in Saudi Arabia will remain at 9.978 million barrels per day during the whole of 2024.
Saudi Arabia also announced an additional cut of one million barrels per day during the month of July, which can be extended, so that the Kingdom’s production becomes 9 million barrels per day, and the total reduction is 1.5 million barrels per day.
And the Saudi Ministry of Energy stated – in a statement, which was seen by the specialized energy platform – that this additional voluntary cut “comes to reinforce the precautionary efforts made by OPEC + countries with the aim of supporting market stability and balance.”
UAE production will reach 3.075 million barrels per day from January 1 to December 31, 2024, after raising its baseline by 200,000 barrels per day next year.
Oil production quotas for OPEC + countries set Russian oil production at 9.328 million barrels per day during 2024, which is the level of production required for February 2023, and is subject to review by June 2023, according to the coalition statement.
Iraq’s production will continue at 4.22 million barrels per day through 2024, and Kuwait’s production at 2.548 million barrels per day, under the new oil production quotas.
While the Sultanate of Oman’s oil production will reach 801 thousand barrels per day, and Algeria’s production will reach 959 thousand barrels per day over the next year (2024), that is, at the levels followed since May 2023.
OPEC + meeting decisions
The OPEC + alliance clarified, in its statement, which was seen by the energy platform, that all countries of the alliance will be subject to an assessment by 3 independent sources specializing in oil resources, by the end of June 2024, in order to determine the countries’ production capacities for use as reference production levels for the year 2025.
The alliance reaffirmed the role of the Joint Ministerial Oversight Committee in closely reviewing global oil market conditions, oil production levels, and the level of compliance with the Declaration of Cooperation, with the committee meeting every two months.
He indicated that the ministerial meeting of the OPEC + alliance was held every 6 months, with the Joint Ministerial Monitoring Committee being given the authority to hold any additional meetings, or to request an emergency meeting of the alliance at any time to address market developments, whenever necessary.
For his part, Saudi Energy Minister Prince Abdulaziz bin Salman confirmed that the OPEC + meeting today witnessed unprecedented cooperation, stressing that the coalition does not target a specific price range, and that the coalition countries will do everything necessary to achieve stability in the oil markets.
The minister said – in his statements during the press conference that followed the ministerial meeting – that “the kingdom is committed to voluntarily reducing oil production … it will be one million barrels per day in real terms … we always respect our commitments.”
The UAE Minister of Energy, Suhail Al Mazrouei, stated that the decisions of OPEC + today came for more transparency and are in line with market requirements.
He also said, “We are living in a phase of energy transition… and this phase requires us to raise the level of production and attract more investments.”
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