OPEC+ alliance sticks to oil production cuts amid global economic uncertainty

2024-05-08 04:35:21

(MENAFN) Russian Deputy Prime Minister Alexander Novak affirmed that discussions within the OPEC+ alliance do not include considerations for increasing oil production. The statement, relayed by the Russian government via the Telegram application, quoted Novak's assertion that there are currently no talks within OPEC+ regarding production hikes.

Since late 2022, OPEC+ has implemented a series of production cuts in response to heightened output from the United States and other non-member producers, alongside concerns about demand amid the economic ramifications of elevated interest rates in major economies.

The coalition, comprising both the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia, is scheduled to convene on June 1 in Vienna to deliberate on production policy.

Presently, the OPEC+ alliance is curbing production by 5.86 million barrels per day, accounting for approximately 5.7 percent of global demand. These cuts encompass 3.66 million barrels per day from OPEC+ members, set to remain effective until the conclusion of 2024, alongside voluntary reductions from select members amounting to 2.2 million barrels per day, which are slated to expire by the end of June.

Amidst the prevailing economic uncertainty, OPEC+ remains steadfast in its commitment to maintaining existing production levels, signaling a concerted effort to stabilize oil markets amidst fluctuating global conditions.

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