Oil cartel: Oil cartel Opec+ continues the course of production cuts

Oil cartel: Oil cartel Opec+ continues the course of production cuts

The negotiations were long. Then the alliance of 23 countries was able to agree on a future production volume.

The oil cartel Opec+ is continuing its course of production cuts in the face of falling oil prices. The association of 23 countries set a production target of around 40.4 million barrels (159 liters each) per day for 2024. According to the Russian agency Tass, this means a reduction in total Opec+ production by 1.4 million barrels per day.

In addition, Saudi Arabia will voluntarily produce a million barrels a day less this July, said the country’s energy minister, Abdulasis bin Salman, in Vienna. This measure can be extended. As early as April, some members of the alliance had agreed on a temporary significant reduction in production.

The alliance, led by Saudi Arabia and Russia, made these decisions after around seven hours of negotiations. Due to the shortage of supply, the price of petrol is likely to rise again, at least in the short term.

Apart from a brief spike in April, oil prices have been on a downtrend for around a year. In mid-2022, a barrel of OPEC oil cost around $115; it is currently around $75. Verbund had already reacted to this development in October 2022 and decided to cut production by two million barrels a day. Allianz has a global market share of around 40 percent.

Source: Stern

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