OPEC+ reached a deal "in principle" on Thursday to extend and expand current oil production cuts up to 2 million barrels per day through at least the first fiscal quarter of 2024, sources reported following a virtual meeting of the organization's Joint Ministerial Monitoring Committee.
The deal entails leaving in place current voluntary production limits from Saudi Arabia and Russia totaling 1.3 million barrels of oil per day. Russia will cut an additional 500,000 barrels per day, according to Reuters reports, and other members will reduce production by an undisclosed amount.
The deal's exact provisions will be released individually by OPEC+ member states, rather than by a joint communique.
OPEC+'s current daily oil output of around 43 million barrels per day already accounts for a cut of 5 million barrels per day agreed to earlier in 2023. The international organization controlling nearly 40% of the world's oil production will now maintain a further reduction up to 2 million barrels per day through early 2024, as an oil surplus is expected to soon emerge.
The price of West Texas Intermediate crude oil (WTI) was down just 0.26% on the New York Mercantile Exchange just after 11 a.m. ET.
COP28 began today in Dubai, where countries are set to discuss increasing their commitments to winding down fossil fuel extraction. OPEC+ has representatives present at the summit, in addition to representatives from every major international oil and gas company.
