OPEC+ Set to Deepen Oil Production Cuts

Nov. 28, 2023
OPEC+ will be considering extending or deepening cuts to oil production into next year.

OPEC+ will be considering extending or deepening cuts to oil production into next year, Reuters reports.

Analysts have predicted the cuts to be made into next year to better support prices, which this past Monday were trading at just over $80 a barrel–a decrease from the near $98 seen in late September.

OPEC+ will begin online meetings to determine oil output levels beginning Thursday. The meeting was rescheduled from Nov. 26 due to a disagreement over output levels for African producers, though sources have said the group is working on a compromise.

One OPEC+ source expects there to be an option for a “collective further reduction” on Thursday, and OPEC+ sources earlier this month said that the organization was posed to consider more cuts. 

Saudi Arabia, Russia, and other OPEC+ members have already committed to total oil output cuts of around 5 million barrels per day (bpd), representing about 5% of daily global demand. Saudi Arabia has also made an additional voluntary production cut of 1 million bpd that is set to expire at the end of December, along with a Russian export cut of 300,000 bpd that will also expire.