OPEC+ prepares to discuss further output cuts ahead of June 4 meeting

By Al Mayadeen English
Source: Agencies
2 Jun 2023 23:48

Russian Deputy Prime Minister Alexander Novak said earlier this week that the OPEC+ organization will be making the decisions it seems fit for the oil market at the upcoming meeting.

A flag with the Organization of the Petroleum Exporting Countries (OPEC) logo is seen during a meeting of OPEC and non-OPEC producing countries in Vienna, Austria September 22, 2017 (Reuters)

Reuters reported on Friday, citing sources, that the OPEC+ group is discussing the decision to implement further oil output cuts among for the upcoming meeting scheduled for June 4.

Ahead of the meeting, Russian Deputy Prime Minister Alexander Novak said earlier this week that the OPEC+ organization will be making the decisions it seems fit for the oil market at the upcoming meeting, all while remaining true to previous decisions.

In April, the Saudi energy minister announced that Saudi Arabia will be cutting down oil production at a rate of 500,000 barrels per day until the end of 2023, for the sake of stabilizing the oil market.

Russia reciprocated the decision and announced a downplay of oil production at the same rate. Iraq, UAE, Algeria, Kuwait, and Oman will be reportedly following suit to voluntarily cut down on oil production.

According to Deputy Prime Minister Alexander Novak, Russia will extend its 500,000 barrels per day (bpd) oil output cut until the end of the year.

Within minutes of Saudi Arabia, Kuwait, Oman, Iraq, and the United Arab Emirates' declarations, Russia made the announcement.

On May 18, expert James Durso said that the US House of Representatives Judiciary Committee was reportedly considering a bill to put pressure on the OPEC oil producers' group to stop cutting output by revoking the sovereign immunity that had protected OPEC+ members and their national oil companies from price collusion lawsuits.

In addition to a punishment for Arab OPEC members, the bill may be a message to others, for repairing relations with Iran and Syria under the guise of safeguarding American consumers.

It also avoids a mention of the Biden administration's strategy of limiting oil and gas output, despite the fact that the government has recently permitted limited drilling on federal lands.