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OPEC Lifts Production in February

OPEC+ Headed for 2 Million Bpd Oil Output Cut in 2024

As the meeting of the Joint Ministerial Monitoring Committee (JMMC) began on Thursday, delegates are telling media that OPEC+ could be discussing deeper oil production cuts for the first quarter of 2024 and that total cuts could be close to 2 million barrels per day (bpd).  

Total OPEC+ cuts could approach 2 million bpd, depending on the willingness of the countries to contribute, according to delegates, commodity analyst Giovanni Staunovo reported as the JMMC meeting began.

The figure includes a rollover of the Saudi and Russian cuts of a total of 1.3 million bpd.

The meeting of the OPEC+ monitoring panel will be followed by a full online OPEC+ meeting at which all decisions will be taken.

"There's a lot of confidence that OPEC plus will conclude a deal that leads to a deeper cut," Amena Bakr, Chief Opec Correspondent and Deputy Bureau Chief at Energy Intelligence, reported, but noted that it's still not clear what the final number would look like.

Oil prices extended gains on the reports of deeper cuts next year and were trading 1.5% higher less than half an hour before the full OPEC+ meeting was set to begin.

Earlier today, sources close to the Saudi delegation told the Financial Times that Saudi Arabia, the leader of OPEC and its top producer, has won provisional approval for additional cuts, to which other OPEC+ members will contribute, too.

Saudi Arabia has warned other OPEC+ members that it could unwind its voluntary 1 million bpd cut if other producers don't agree to cut deeper, delegates told FT.

A preliminary agreement has been reached that OPEC+ could cut more than 1 million barrels per day (bpd) next year, including Saudi Arabia extending its voluntary cuts and additional cuts from other members of the group, two sources at OPEC+ told Reuters earlier in the day.

By Charles Kennedy for Oilprice.com

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Charles Kennedy

Charles is a writer for Oilprice.com More