Opec+ confounds market with three-month cuts easing
The group had been widely anticipated to keep the prior agreement in place, but a rapidly agreed deal will see cuts relaxed through the summer
The Opec+ group has yet again caught markets off-guard, agreeing on 1 April to a gradual easing of output restrictions over the next three months. This means the 7mn bl/d of collective production withheld through to the end of April will be reduced by 350,000bl/d in May, by the same amount in June and by another 450,000bl/d in July. Meanwhile, Saudi Arabia will also ease its additional voluntary 1mn bl/d cut by 250,000bl/d in May, 350,000bl/d in June and 400,000bl/d in July, bringing 2.15mn bl/d of oil production back online by mid-summer. “Our return of this voluntary cut, we will do it also gradually, mindful of how the market may react” – Abdulaziz, Saudi energy minister With memb
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields