Saudi Arabia revealed on Sunday its plan to decrease oil exports to the global market by one million barrels per day (bpd). This move comes as the OPEC+ alliance, comprising major oil-producing nations, grapples with declining oil prices and the imminent risk of an oversupply.
Saudi Arabia, acting as the leading force in OPEC, played a key role in the deliberations and outcomes of the OPEC and non-OPEC Ministerial Meeting in Vienna.
Saudi Oil Minister Prince Abdulaziz bin Salman actively engaged with delegates from African nations and conducted negotiations with the United Arab Emirates to tackle matters related to production quotas, including proposing reductions in production quotas for certain African countries.
OPEC+, an alliance comprising the Organization of the Petroleum Exporting Countries and its allied nations led by Russia, collectively accounts for approximately 40% of the global crude oil production, signifying that the policy decisions made by OPEC+ have a significant influence on global oil prices.
During the meeting, participating nations reasserted their commitment to the Framework of the Declaration of Cooperation (DoC) and the Charter of Cooperation. These agreements have been crucial in fostering collaboration between OPEC and non-OPEC countries, demonstrating OPEC’s continuous efforts to tackle market challenges and maintain stability in the global oil market.
As a result, participating OPEC and non-OPEC countries reached a consensus to modify the global crude oil production levels. Effective from January 1, 2024, to December 31, 2024, the production level is set at 40.46 million barrels per day (bpd). The distribution of this production level was agreed upon among the participating nations, ensuring a collective decision on the allocation of production quotas.