Abu Dhabi: The United Arab Emirates will implement an additional voluntary cut of 163 thousand barrels per day starting of January1, 2024 until the end of March 2024, in coordination with some OPEC+ participating countries.
Therefore, the UAE's production will be 2,912 thousand barrels per day until the end of March 2024. Afterwards, in order to support market stability, these additional cut volumes will be returned gradually subject to market conditions.
This voluntary cut is in addition to the voluntary cut of 144 thousand barrels per day previously announced by the United Arab Emirates in April 2023, which extends until the end of December 2024.
This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC Plus countries with the aim of supporting the stability and balance of oil markets.
Several OPEC+ countries announce additional voluntary cuts
The OPEC Secretariat noted the announcement of several OPEC+ countries of additional voluntary cuts to the total of 2.2 million barrels per day, aimed at supporting the stability and balance of oil markets.
These voluntary cuts are calculated from the 2024 required production level as per the 35th OPEC Ministerial Meeting held on 4th June 2023, and are in addition to the voluntary cuts previously announced in April 2023 and later extended until the end of 2024, according to a press release issued by OPEC on Thursday.
These additional voluntary cuts are announced by the following OPEC+ countries: Saudi Arabia (1,000 thousand b/d); Iraq (223 thousand b/d); United Arab Emirates (163 thousand b/d); Kuwait (135 thousand b/d); Kazakhstan (82 thousand b/d); Algeria (51 thousand b/d); and Oman (42 thousand b/d) starting 1st of January until the end of March 2024. Afterwards, in order to support market stability, these voluntary cuts will be returned gradually subject to market conditions.
The above cuts will be in addition to the announced voluntary cut by the Russian Federation of 500 thousand barrels per day for the same period (starting 1st of January until the end of March 2024), which will be made from the average export levels of the months of May and June 2023, and will consist of 300 thousand barrels a day of crude oil and 200 thousand barrels per day of refined products.