Saudi Arabia to make 1m bpd production cut, others to extend cuts through 2024 | Forexlive

OPEC+ wants higher oil prices.

Saudi Arabia will make a further voluntary oil production cut while others — including Russia — will continue with voluntary cuts through 2024, rather than the current plan to reevaluate at the end of 2023.

Starting in July, Saudi Arabia will cut production by 1 million barrels per day. That’s currently just for one month, but Saudis energy minister said it could be extended (likely based on where prices are).

For other OPEC members, baselines have been be adjusted for 2024 and that means lower ceilings for Angola and Nigeria. However it should be noted that neither Angola, nor Nigeria is currently producing anywhere near quotas.

The next OPEC meeting was set for November 26 but the group always maintains flexibility to call new meetings.

The output target for 2024 is 40.46 but note that the UAE’s baseline was moved up by 200k bpd. So while I believe their voluntary cuts still apply, they will be able to pump from a higher baseline.

I expect that we will go above $75 at the open.