Oman, OPEC+ members extend oil output cuts through June

Oman and other OPEC+ member nations agreed to extend their voluntary cuts to oil production through the second quarter of 2024. The move is part of the OPEC+ group's strategy to stabilise the oil market and prices by reducing supply.

The sultanate will extend its additional voluntary cut of 42,000 barrels per day (bpd) of crude oil until the end of June 2024, in coordination with some OPEC+ participating countries, the Ministry of Energy and Minerals announced.

This voluntary cut is in addition to the voluntary cut of 40,000 bpd previously announced by Oman in April 2023, which extends until the end of December 2024.

'Accommodating the additional cuts during the second quarter of this year, Oman’s production will be 759,000 bpd until the end of June 2024. Afterwards, in order to support market stability, these additional cut volumes will be returned gradually subject to market condi

Oman will extend its additional voluntary cut of 42,000 barrels per day of crude oil until the end of June 2024, in coordination with some OPEC+ member countries

tions,' the Minister of Energy and Minerals said in a statement posted on X.

This additional voluntary cut by Oman, as per the ministry, comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.

Oman crude prices rose 1.9% to close at $83.12 per barrel on Monday at the Dubai Mercantile Exchange (DME).

The OPEC Secretariat noted the announcements of several OPEC+ countries extending additional voluntary cuts of 2.2mn bpd, 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 June 4, 2023, and are in addition to the voluntary cuts previously announced in April 2023 and later extended until the end of 2024.

These additional voluntary cuts are announced by the following OPEC+ countries: Saudi Arabia (1mn bpd); Iraq (220,000 bpd); United Arab Emirates (163,000 bpd); Kuwait (135,000 bpd); Kazakhstan (82,000 bpd); Algeria (51,000 bpd); and Oman (42,000 bpd) for the second quarter of 2024.

These additional cuts by OPEC+ members will be in addition to the announced voluntary cut by the Russian Federation of 471,000 bpd for the second quarter of 2024.