By Sibel Morrow
The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, announced on Thursday that Brazil would join the group, while also confirming their collective production cuts of 3.6 million barrels per day (bpd) to run until the end of 2024.
The decision came during the 36th OPEC and non-OPEC ministerial meeting held in Austria's capital, Vienna, via videoconference.
According to a statement issued after the meeting, OPEC+ endorsed their previous output cut decisions in order "to ensure a stable and balanced oil market."
The group did not explain whether the voluntary cuts by some member countries, including Saudi Arabia and Russia, would continue from January onward. However, international media reports revealed that each member country would individually announce its voluntary cuts.
Since October 2022, Saudi Arabia has been contributing to the group's joint cut of 2 million barrels per day (bpd) through the end of 2024. Additionally, Saudi Arabia is leading the way with cuts of 500,000 bpd starting in May as part of the collective cuts of around 1.6 million bpd.
Furthermore, the country announced in July another voluntary cut of 1 million bpd, which is set to expire this December.
Russia agreed to undertake two separate oil supply reductions, comprising a cut of 500,000 bpd in April, which will extend until the end of 2024, and an export reduction of 300,000 bpd until the end of this year.
- Production quotas revised for next year
As agreed during the previous ministerial meeting in June, OPEC+ completed the assessment of the production quotas of three member countries.
According to data provided by three independent sources, including IHS, Wood Mackenzie and Rystad Energy, production levels that can be achieved by Angola, Congo and Nigeria would be 1.11 million bpd, 277,000 bpd and 1.5 million bpd, respectively.
- Brent declines more than 1.5%
The price of Brent declined to $81.50 per barrel by the time the meeting ended, posting a 1.66% daily decrease.
American benchmark West Texas Intermediate (WTI) also dropped to $76.58 per barrel at the same time, recording a 1.76% loss.