OPEC+ Slashed its Q1 2024 Oil Supply by an Extra 2.2 Million Barrels/Day
OPEC+ Oil Supply Cuts
Several OPEC+ counties on Thursday, agreed to slash supply by a total of 2.2 million barrels per day for the first quarter of 2024. Standing out is Saudi Arabia, which will rollover its 1 million bpd cuts and Russia that will curb supply by 500,000 bpd [1]. These measures go on top of the previously agreed output reduction program of 3.66 million bdp, scheduled to last until the end of the next year. These brings the total tally for Q1 2024 to nearly 5.9 million bpd. [2]
According to the November Oil Report, the International Energy Agency (IEA) projects world oil demand of almost 103 million bpd in 2024, and the total OPEC+ curbs would account for more than 5% of that. However, the agency expects demand growth to slow compared to the current year and had warned that the oil market "could shift into surplus at the start of 2024". [3]
The deep cuts of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, have failed to support oil prices recently. After October's 2023 peak, USOil posted two straight losing months, shedding more than 15%. It also dropped on Thursday, after the new cuts announcement.
The new curbs for Q1 2024 are voluntary by specific countries and not formal OPEC+ plan, amidst disagreements around the quotas. These led to the postponement of the meetings, which were originally scheduled to take place over the last weekend. Markets appear unconvinced for now, as OPEC+ supply has shown an increase in recent months. The output reduction program is rather deep, but compliance is key, while non-OPEC producers pump more and IEA expects them to continue to lead global growth next year.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 30 Nov 2023 https://www.opec.org/opec_web/en/press_room/7267.htm | |
| Retrieved 30 Nov 2023 https://www.opec.org/opec_web/en/press_room/7160.htm | |
| Retrieved 10 Apr 2026 https://www.iea.org/reports/oil-market-report-november-2023 |
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