Brazil will be included in the OPEC+ group
It was announced that Brazil will join the OPEC+ group, made up of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producing countries, starting in January 2024.
The 36th OPEC and non-OPEC Ministerial Meeting, held online to assess market conditions of the 13 OPEC members led by Saudi Arabia and the energy and oil ministers of 10 non-OPEC oil-producing countries led for Russia, has ended.
In the written statement from OPEC it was indicated that the meeting welcomed the participation of the Minister of Mines and Energy of Brazil, Alexandre Silveira, who will be included in the OPEC+ group alliance starting in January 2024.
The statement highlighted that the current commitment of the member countries to guarantee a stable and balanced oil market is confirmed.
The statement highlighted that, in light of the current fundamentals of the oil market, the group will adhere to the production cut decision adopted at the 35th Ministerial Meeting of OPEC and non-OPEC on June 4, and that in line With this decision, next year’s production level in Angola, Congo and Nigeria has been re-evaluated.
The statement shared that the 37th OPEC and non-OPEC Ministerial Meeting will be held in Vienna on June 1, 2024.
SOME MEMBERS WILL REDUCE ADDITIONAL PRODUCTION
The OPEC statement states that some member countries will make an additional voluntary production cut of 2.2 million barrels per day.
Accordingly, in the first quarter of next year, Saudi Arabia 1 million barrels per day, Iraq 223 thousand barrels per day, United Arab Emirates 163 thousand barrels per day, Kuwait 135 thousand barrels per day, Kazakhstan 82 thousand barrels per day, Algeria 51 thousand barrels per day, Oman 42 thousand barrels per day, barrel production will be reduced.
These voluntary cuts will be gradually reduced depending on market conditions.
On the other hand, Russia will continue with its voluntary cut of 500 thousand barrels per day, which it has implemented since April, in the first quarter of next year. This cut, which will be added to the group’s total production cuts, will consist of 300 thousand barrels of crude oil and 200 thousand barrels of refined products and will be deducted from the country’s exports.
PRODUCTION INTERRUPTION DECISIONS
The OPEC+ group decided to cut production by 2 million barrels per day at the 33rd OPEC and non-OPEC Ministerial Meeting held on October 5, 2022.
Subsequently, at the 48th Joint Ministerial Monitoring Committee Meeting on April 3, 2023, it was announced that some member countries would impose a voluntary production cut of approximately 1.6 million barrels per day starting in May.
At the 35th OPEC and non-OPEC Ministerial Meeting on June 4, the group agreed to continue the production cut, which exceeds approximately 3.6 million barrels per day, until the end of 2024.
At the meeting in question, Saudi Arabia’s Energy Minister Abdulaziz bin Salman also stated that his country would voluntarily cut additional production by 1 million barrels per day. Saudi Arabia subsequently decided to extend the voluntary production cut until the end of the year. (AA)