The Saudi Press Agency reported, citing a source from the Ministry of Energy, that Saudi Arabia will extend its voluntary production cut of one million barrels per day until the end of March. The agency stated that Saudi oil production will be around nine million barrels per day until the end of March 2024. It added, "In support of market stability, these additional cut amounts will be gradually restored according to market conditions."
The UAE announced that it will voluntarily reduce its oil production by an additional 163,000 barrels per day, starting January 1, 2024, until the end of March 2024. They stated that their oil production will be 2,912,000 barrels per day until the end of March 2024. They pointed out that "to support market stability, these additional cut amounts will be gradually restored based on market conditions." This voluntary cut comes in addition to a previous voluntary reduction of 144,000 barrels per day announced in April 2023, which will continue until the end of December 2024.
Algeria plans to voluntarily cut its oil production by 51,000 barrels per day for the first quarter of 2024, aiming for a production target of 908,000 barrels daily. This new cut is in addition to another voluntary reduction of 48,000 barrels per day announced in April, which is scheduled to continue until the end of 2024.
In Kuwait, Oil Minister Saad Al-Barak stated that Kuwait will voluntarily reduce its oil production by 135,000 barrels per day for three months starting January 1. He confirmed that Kuwait's oil production will reach 2.413 million barrels per day until the end of March 2024. The minister noted that this cut aims to stabilize the markets and will be added to a previously announced voluntary reduction of 128,000 barrels per day made in April.
Earlier, two sources involved in OPEC+ discussions told Reuters that "the group of oil-producing countries reached a consensus on production cuts." A delegate for Reuters stated that "the meeting of the OPEC+ Joint Ministerial Monitoring Committee ended today without recommending production levels for 2024." Two other delegates later confirmed that no recommendation was made.
A source in OPEC+ had indicated, before official meetings planned for later today, that "OPEC+ reached a preliminary agreement to further cut oil production by more than one million barrels per day." A delegate involved in OPEC+ talks told Reuters that "today's meeting of oil-producing countries to discuss production levels for 2024 focuses on new cuts for the first quarter of no less than 1.3 million barrels daily." They added that "total production cuts may approach two million barrels per day based on the outcome of negotiations among members today." It was also noted by a source in the OPEC+ meeting that "Saudi Arabia is preparing to cut production by one million barrels per day in early 2024 as per the terms of the OPEC+ agreement today, with Russia contributing a cut of 500,000 barrels per day." It was expected that "other members of the producer alliance would also contribute additional cuts."
