Oil rises in response to the extension of the adjustment announced by OPEC

MADRID, 4 Mar. (EUROPA PRESS) -

The price of a barrel of Brent quality oil, a reference for the Old Continent, extended its increases to Monday, after learning this Sunday of the decision of several members of the Organization of Petroleum Exporting Countries (OPEC), as well as Russia, to extend the restrictions on its crude oil supply during the second quarter of the year.

In this way, the price of a barrel of Brent rose this Monday to almost $84, after having fallen last week to just over $81.

As reported by the cartel, the countries decided to extend additional voluntary cuts, which reach a volume of 2.2 million barrels per day, "with the aim of supporting the stability and balance of oil markets."

These voluntary cuts are in addition to the voluntary supply limitations announced in April 2023 and later extended until the end of 2024.

Specifically, Saudi Arabia will lead the adjustment with 1 million barrels per day; together with Iraq (220,000 barrels per day); United Arab Emirates (163,000 barrels per day); Kuwait (135,000 barrels per day); Kazakhstan (82,000 barrels per day); Algeria (51,000 barrels per day); and Oman (42,000 barrels per day) by the second quarter of 2024.

Likewise, Russia will add 471,000 barrels/day for the second quarter of 2024. In April it will correspond to 350,000 barrels per day of production and 121,000 barrels per day of exports, while in May there will be 400,000 barrels per day of production and 71,000 barrels per day of exports. In June, it is estimated that there will be 471,000 barrels of total production per day.

In this sense, the organization noted that Russia's voluntary production cut is in addition to the voluntary adjustment of 500,000 barrels per day previously announced in April 2023, which extends until the end of December 2024.