(MENAFN) On Saturday, Alexander Dyukov, the CEO of Russian company Gazprom Neft, remarked that the global oil market has experienced a slight surplus. Dyukov expressed optimism regarding the efficacy of the supply cuts initiated by the OPEC+ group, comprising the Organization of the Petroleum Exporting Countries and its allies. These cuts, effective from the beginning of January, are expected to contribute to restoring balance in the market, according to Dyukov.
In November of the previous year, OPEC+ had collectively approved a voluntary production cut of 2.2 million barrels per day for the first quarter of 2024, with Saudi Arabia leading the reduction by approximately one million barrels per day. The ongoing efforts to manage oil production are integral to stabilizing global oil prices and addressing market dynamics influenced by various geopolitical and economic factors.
Looking ahead, the OPEC+ Joint Ministerial Monitoring Committee is slated to convene a meeting next Thursday. Speculation abounds that the committee will deliberate on oil production levels for April and the subsequent months, reflecting the ongoing commitment to strategic supply management.
Meanwhile, the International Energy Agency, based in Paris, has indicated that expected supplies through 2024 appear to be in good shape. This assessment takes into account geopolitical concerns arising from conflicts in the Middle East, underscoring the delicate balance and careful considerations needed in navigating the global energy landscape. The collaboration among oil-producing nations within OPEC+ remains crucial in addressing market challenges and ensuring a stable and resilient oil market.
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