The Organisation of Petroleum Exporting Countries (OPEC) and its allies on Sunday agreed to extend its current oil output voluntary cuts until the end of 2024.
OPEC disclosed this at its 35th OPEC and non-OPEC ministerial meeting, a statement released by the organisation said
The oil cartel said it decided to achieve and sustain stability and provide long-term guidance for the market.
OPEC and its allies had, in October last year, agreed to cut oil output by 2 million barrels per day in November, the deepest cut by OPEC+ since the 2020 COVID pandemic.
The decision came despite pressure from the United States and others advocating that the group increase its output.
In April, OPEC said it would start “a voluntary reduction” of 1.66 million barrels per day in its production of crude oil alongside other members of OPEC.
The cuts will start in May and last through the end of the year, an official with the Saudi Ministry of Energy was quoted as saying by the Saudi state-run news agency, SPA.
The cut is in addition to the reduction announced by OPEC+ in October 2022, according to SPA.
On Sunday, OPEC said it would extend the cut until 2024.
It noted that the decision was taken in light of the continued commitment of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market and to provide long-term guidance for the market.
The cartel sought to reaffirm the framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings, as well as the Charter of Cooperation, signed on 2 July 2019.
It also decided to “adjust the level of overall crude oil production for OPEC and non-OPEC Participating Countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024.
“Reaffirm and extend the mandate of the Joint Ministerial Monitoring Committee (JMMC) and its membership to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC and this Statement, assisted by the Joint Technical Committee Committee (JTC) and the OPEC Secretariat. The JMMC is to be held every two months.
“Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six months in accordance with the ordinary OPEC scheduled conference.
“Grant the JMMC the authority to hold additional meetings or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary.”
The cartel also reiterated the critical importance of adhering to full conformity and subscribing to the concept of compensation by those countries who produce above the required production level in addition to their already decided production levels.
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