The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, announced the postponement of its meeting on production policy by one day to June 2.
The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, announced the postponement of its meeting on production policy by one day to June 2.
The meeting was scheduled to take place in Vienna on June 1, but will be held online the following day.
Oil producers in the OPEC+ alliance are currently implementing a voluntary production cut of about 2.2 million barrels per day for the first half of 2024, led by Saudi Arabia, which is extending a previous voluntary cut.
These reductions come in addition to a previous reduction announced since late 2022 in several stages, bringing the total pledged reductions to about 5.86 million barrels per day, or approximately 5.7% of daily global demand.
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In this context, the research department of Citigroup “CITI RESEARCH” ruled out that the “OPEC Plus” alliance would deepen the volume of production cuts in the third quarter of this year.
He explained that increasing the cuts would likely be a surprise with a positive impact, but it remains a weak possibility from their point of view, as the most likely scenario remains maintaining the current cuts for the third quarter of the year.
Citigroup expected that the average Brent crude oil would reach $86 in the second quarter of 2024, but the average for the second half of the year is heading towards $70 and an average of $60 in 2025.
