OPEC+ production cuts deepen with extensions from Saudi Arabia, Russia and other oil giants

NEW YORK (AP) — Some members of oil cartel OPEC, led by Saudi Arabia, and allied producers like Russia are again deepening their voluntary crude supply cuts.

Announcements from several OPEC+ countries extend reductions of some 2.2 million barrels a day, the secretariat for the multinational organization noted Sunday. Saudi Arabia led the pack by extending its previously-implemented cut of 1 million barrels a day through the end of 2024's second quarter.

The extension, which was first shared by the state-owned Saudi Press Agency citing a Energy Ministry source, means the kingdom's crude production will stand at about 9 million barrels a day through the end of June.

Also on Sunday, Russia announced an additional voluntary cut of 471,000 barrels per day for the second quarter — across a blend of production and exports.

Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman will be continuing reductions as well, according to OPEC's secretariat, in smaller amounts.

The OPEC+ countries participating in production cuts, which have gradually piled up since October 2022, have pointed to goals of balancing the oil market — noting that volumes will be gradually returned subject to market conditions.

The price of Brent crude, the international benchmark, stood at about $83.55 per barrel at the end of last week, up from $77.33 seen a month ago. Despite the recent increase, Brent's going price is still modest — notably far below the soaring oil prices following Russia's invasion of Ukraine in 2022 — and in line with analysts' previous expectations.

Sunday's latest extension of cuts are in addition to voluntary reductions that were announced in April 2023 and extend through December of this year — including 500,000 barrel-a-day cuts from both Saudi Arabia and Russia.