All articles tagged with #oil cuts
OPEC+ has agreed to increase oil output by 548,000 barrels per day in August, accelerating production hikes to regain market share amid rising supplies from competitors like the US, and reversing most of its previous cuts since April, citing a steady global economic outlook and healthy market fundamentals.
Saudi Arabia and Russia have confirmed that they will continue their additional voluntary oil output cuts until the end of the year, in response to concerns over demand and economic growth. Saudi Arabia will maintain its additional cut of 1 million barrels per day (bpd), while Russia will continue its cut of 300,000 bpd. The cuts will be reviewed next month to consider extending, deepening, or increasing them. The OPEC+ alliance, which includes OPEC countries and allies like Russia, has been reducing output since last year to maintain market stability. Despite support from conflicts in the Middle East, oil prices have weakened to around $85 a barrel.
Saudi Arabia and Russia have announced that they will continue their additional voluntary oil output cuts until the end of the year, in response to concerns over demand and economic growth. Saudi Arabia will maintain its cut of 1 million barrels per day (bpd), while Russia will continue its cut of 300,000 bpd. The cuts will be reviewed next month to consider extending, deepening, or increasing them. The aim is to support the stability and balance of oil markets. Despite the conflict in the Middle East, oil prices have weakened to around $85 a barrel. OPEC+ is set to meet on November 26 to discuss the situation.
Saudi Arabia and Russia have announced that they will continue their voluntary oil cuts until the end of the year, citing tightening supply and rising demand as factors supporting oil prices. The decision comes ahead of a meeting of the OPEC+ ministerial monitoring committee, which is unlikely to make any changes to current oil output policy. Oil prices initially dropped following the news but later recovered. Saudi Arabia will maintain its voluntary cut of one million barrels per day (bpd) until the end of the year, with a review scheduled for next month. Russia had previously announced a reduction of 300,000 bpd until the end of 2021.
Saudi Arabia's economy experienced a slowdown in the second quarter, with GDP expanding by 1.1% compared to 3.8% in the previous quarter, due to crude output cuts and a drop in oil prices. The non-oil sector grew by 5.5%, but the hydrocarbon-reliant economy suffered a 4.2% loss in non-oil GDP. Lower global crude prices and voluntary oil production cuts have impacted the country's revenues. The International Monetary Fund has downgraded Saudi Arabia's GDP growth projections for 2023 from 8.7% to 1.9% due to the production cuts. This slowdown is expected to affect the overall performance of the Middle East and Central Asian region.
Saudi Arabia will cut its oil output to 9 million barrels per day in July, down from around 10 million bpd in May, as part of a broader OPEC+ deal to limit supply into 2024. OPEC+ has agreed to extend cuts of 3.66 million bpd until the end of 2024, and reduce overall production targets from January 2024 by a further 1.4 million bpd versus current targets to a combined 40.46 million bpd. The move is aimed at boosting flagging oil prices, which have been under pressure from concerns about the weakness of the global economy and its impact on demand.
The surprise OPEC+ cuts are making oil balances look “insanely bullish” for later this year, provided that the global economy holds up, according to Energy Aspects. The latest cuts come on top of the 2 million bpd cut announced in October 2022 and running through the end of 2023. All those cuts are expected to tighten the market further in the second half of the year. As long as the economy holds up, it is looking like a very bullish second half of the year, and oil prices could reach $100.