OPEC+ oil producers are scheduled to meet on June 2 to decide their next output policy steps, including whether to extend voluntary production cuts totalling about 2.2 million barrels per day (bpd), which expire in the first half of 2024.

These voluntary cuts from the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, come on top of earlier reductions of 3.66 million bpd that were announced in various steps since late 2022 and which are valid until the end of 2024.
Total pledged cuts therefore currently amount to 5.86 million bpd, equal to about 5.7% of daily world demand, according to Reuters calculations.

WHAT ARE THE MOST RECENT CUTS?

The latest 2.2 million bpd round of voluntary cuts was announced by the individual countries on Nov. 30 2023.

Initially in place for the first quarter of 2024, the countries in March extended them until the end of June and Russia slightly adjusted how its cut would be implemented.

Included in the 2.2 million bpd is an extension of existing Saudi and Russian voluntary cuts from 2023 of 1.3 million bpd, meaning the newest element of the cut is about 900,000 bpd.

WHAT WERE THE EARLIER CUTS?

Before November 2023, OPEC+ was making production cuts of about 5 million bpd, comprising 1.3 million bpd of Saudi and Russian voluntary cuts put in place earlier in 2023, and 3.66 million bpd agreed in previous steps.

Of the 3.66 million bpd, 2 million bpd was agreed by OPEC+ in late 2022 and several members agreed voluntary cuts of 1.66 million bpd in April 2023.

OPEC+ when it met in June 2023 extended the 3.66 million bpd of cuts until the end of 2024.

HOW DO THE OUTPUT CUTS AFFECT TARGETS?

The following table shows OPEC+ pledged cuts and production targets for the first half of 2024 in millions of barrels per day, based on information from OPEC, individual nations and Reuters calculations.
Source: Reuters (Reporting by Alex Lawler and Yousef Saba, Editing by Elaine Hardcastle)