Saudi Arabia Likely to Extend Voluntary Supply Cuts into 2024

Saudi Arabia Likely to Extend Voluntary Supply Cuts into 2024

VoM News Desk | November 17, 2023 | 06:11 PM IST | Energy | Follow on Google News

Saudi Arabia Likely to Extend Voluntary Supply Cuts into 2024

Saudi Arabia Likely to Extend Voluntary Supply Cuts into 2024

Saudi Arabia, the world’s leading oil exporter, is expected to continue its additional voluntary supply cuts at least through the first quarter of 2024, as per Amrita Sen, co-founder of Energy Aspects.

OPEC’s Stance on Supply Cuts

Despite the current state of oil prices, which are not considered low enough to prompt OPEC and its allies (collectively known as OPEC+) to deepen supply cuts in 2024, Saudi Arabia’s commitment to extending its cuts indicates a cautious approach to market dynamics. The next OPEC ministerial meeting, scheduled for November 26, will focus on discussing the market outlook.

Brent Oil Prices and Global Factors

Brent crude prices, hovering just above $82 a barrel, reflect concerns about global economic growth and demand. These prices are influenced by several factors, including OPEC+ supply cuts, ongoing conflict in the Middle East, and changes in global oil supply dynamics.

U.S. Policy and International Developments

The U.S. Treasury Department’s recent actions against vessels suspected of violating sanctions on Russian oil highlight the complexities in U.S. policies, which aim to restrict revenues for Russia without disrupting oil flows. The U.S. has also lifted sanctions on Venezuela, expected to enhance heavy oil supplies to the U.S. and Europe, altering the supply from China.

Iran’s Oil Production and Exports

Iran, an OPEC producer, has increased its oil production by about 600,000 barrels per day. It is reportedly exporting record volumes of oil to China, despite ongoing sanctions.

VoM News Desk

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