Additional voluntary cuts of 2.2M bpd extended until September

The OPEC+ meeting 

OPEC+ member states, which had earlier announced additional voluntary cuts in their crude output in April and November 2023, held an in-person meeting in Riyadh today, June 2. Participating countries are Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria and Oman.

These nations agreed to extend their additional voluntary cuts of 2.2 million barrels per day (bpd), which were previously announced in November 2023, until the end of next September, state-run news agency SPA reported.

The size of this reduction will then be restored gradually on a monthly basis, until the end of September 2025, with the aim of shoring up market stability. This monthly increase could be stopped or reversed, based on market developments.

According to Argaam's data, OPEC+ countries agreed during their meeting today to extend their oil output cuts from Jan.1, 2025, until Dec. 31, 2025.

Check this link for more details on voluntary oil output cuts for the coming period:

https://www.moenergy.gov.sa/ar/DigitalDocuments/Documents/Report.jpg

Production levels sunk in with the restoration of the voluntary reduction volumes for November 2023 only, which will be applied from October 2024 until September 2025.

The table in the abovementioned link indicated the following:

1- The required production levels as agreed upon in the 37th ministerial meeting of OPEC member states and non-member participating countries, before implementing the additional voluntary cuts announced in April and November 2023.

2- The required production level for the UAE has been raised by 300,000 bpd. It will be phased in from January 2025 until the end of September 2025, as per what was agreed upon in the recent OPEC ministerial meeting.

3- The required production level as agreed upon in the latest ministerial meeting, according to an assessment by secondary sources who Russia is working with to update production levels.