Alexander Novak: Russia to continue voluntarily oil export cuts by 500 000 barrels per day until the end of March 2024

Voluntary oil production cuts by OPEC+ reach 1.7 million barrels per day in Q1 2024

The increase in global crude oil demand at the end of 2023 amounted to 2.6 million barrels per day compared to 2022. The volume of voluntary cuts in oil production agreed by the OPEC+ countries in the first quarter of 2024 is 1.7 million barrels per day, Russia is also voluntarily reducing crude oil exports by 500 000 barrels per day in the first three months of the year. Thus, according to the terms of the deal, 2.2 million barrels of crude oil per day less will be supplied to the market, the Russian government press office reported following the 52nd meeting of the OPEC+ Joint Ministerial Monitoring Committee (JMMC), which was chaired by the Russian Deputy Prime Minister Alexander Novak.

The JMMC analyzed crude oil production data for November and December 2023 and recorded high compliance with the agreed terms of crude oil output cut deal.

“The level of execution of the deal was more than 100% relative to the voluntary obligations assumed by the alliance participants. In addition, the ministers declared their commitment to the agreements that were reached in November 2023 on the implementation of quotas for the first quarter of 2024. During this time we will continue to monitor the situation. If necessary, we will make decisions that can have a positive impact on the market,” the Deputy Prime Minister was quoted as saying.

The market situation is now stable, a balance of supply and demand has been achieved, however, the market is negatively affected by factors such as the conflict in the Middle East, the aggravation of the situation in the Red Sea and the decline in the development of a number of global economies, Mr. Novak added.

The next, 53rd meeting of the JMMC is slated for April 3, 2024.