Saudi Arabia, Russia may extend OPEC+ oil production cuts past Q1 2024

Bloomberg News December 05, 2023

(Bloomberg) – OPEC+ could take further measures if last week’s production cuts agreement isn’t enough to balance the oil market, said Deputy Prime Minister Alexander Novak.

Russia's Deputy Prime Minister Alexander Novak

The deal to reduce OPEC+ production by 2.2 MMbpd for three months from Jan. 1 should allow the market to “pass safely” through the period of seasonally lower demand usually seen in the first quarter, Novak said on Tuesday according to the Tass news agency.

“In case the current actions are not enough, OPEC + countries will take additional steps to avoid speculations and volatility,” he said.

Novak was speaking one day before he will join President Vladimir Putin on a visit the United Arab Emirates and Saudi Arabia. The overseas trip, a rarity for the Russian leader since the invasion of Ukraine, will bolster partnerships with the key members of OPEC+.

In an interview with Bloomberg on Monday, Saudi Energy Minister Prince Abdulaziz bin Salman said the OPEC+ oil production cuts can “absolutely” continue past the first quarter if needed, as he pledged the curbs would be delivered in full.

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