OPEC+ Announces Voluntary Oil Production Cuts

Several OPEC+ countries have agreed to implement voluntary oil production cuts totaling 2.2 million barrels per day in the first quarter of 2024, according to an announcement made by the oil-producing group. Saudi Arabia, the world’s largest exporter of crude oil, will lead these efforts by extending their voluntary production cut of 1 million barrels per day for an additional three months. Other countries, including Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, will also reduce their production levels. Additionally, Brazil, another major oil producer, will join OPEC+ starting next year. Despite previous pledges to reduce output, crude oil prices have fallen in recent months due to record production in the United States and concerns about decreasing global demand, particularly in China.