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News > World

OPEC+ Countries Adjust Output Targets for 2024

  • Representation of an oil well.

    Representation of an oil well. | Photo: Twitter/ @ESSA_A1I

Published 5 June 2023

Saudi Arabia also announced a further cut of oil production by 1 million bpd, which will start in July for a month that can be extended.

On Sunday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, agreed to adjust their overall production level to 40.46 million barrels per day (bpd) next year.


OPEC+ Production Cut Brings Stability To Oil Market -Analyst

The oil-producer alliance announced the decision in a statement released after the 35th OPEC+ ministerial meeting held in Vienna earlier in the day. OPEC+ reiterated its efforts to "achieve and sustain a stable oil market, and to provide long-term guidance for the market."

Last October, OPEC+ slashed its production targets for 2023 (between November 2022 to December 2023) to 41.86 million bpd. In April this year, the alliance announced a further voluntary output reduction of 1.66 million bpd.

OPEC+'s latest decision came amid sliding oil prices in recent weeks. The alliance's surprise production cuts in early April had pushed up oil prices to above US$85 a barrel, but the prices swiftly retreated and have been hovering just above US$70 a barrel in recent days under pressure from lingering concerns over the economic outlook and demand.

Following OPEC+'s announcement, Saudi Arabia's energy ministry announced a further cut of oil production by 1 million bpd, which will start in July for a month that can be extended. The Saudi energy ministry said the voluntary output reduction is in line with the agreement reached in the OPEC+ ministerial meeting.

The United States and other Western countries have for months accused OPEC+ of pushing up oil prices and fueling inflation with its production cuts, whereas OPEC+ has insisted that the cuts have been made to stabilize the oil market where demand has weakened amid a worsening global economic outlook.

The OPEC+ countries also decided to hold the group's ministerial meeting every six months. The next meeting for the OPEC+ oil and energy ministers will convene on Nov. 26.

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