Russia says Opec+ ‘ready’ to hike oil output cuts in 2024

Reuters/Lisa Leutner

Opec+ members may increase oil production cuts in the first quarter of 2024 to remove “profiteering and restrict volatility”, according to Russian deputy prime minister Alexander Novak.

The decision by Opec+ to lower oil production by 2.2 million barrels per day (bpd) in the first quarter of 2024 will help the world to navigate through a period of low demand “painlessly”, he told Russia’s state-owned TASS news agency.

“I would also like to note that if the current measures are not enough, Opec+ countries are ready to take additional measures to eliminate profiteering and volatility,” he stated.

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Russia will honour commitments on the voluntary reduction of oil and fuel supplies within the Opec+ framework by 500,000 barrels per day (bpd) starting January 2024.

On November 30, Opec+ decided to decrease oil supplies by 2.2 million bpd.

Saudi Arabia will reduce output by one million bpd. The UAE will lower output by 163,000 bpd, Kuwait 135,000 bpd, Oman 42,000 bpd and Iraq 211,000 bpd.

Opec+ consists of the Saudi-led Organization of the Petroleum Exporting Countries (Opec) bloc of 13 countries and the Russian-led non-Opec group, which has 10 participants.