The Organization of Petroleum Exporting Countries (OPEC) and its Russia-led allies (OPEC+) on Sunday agreed to set a new production target at 40.46 million barrels per day starting from January through December of the next year. The production baseline until the end of this year remains unchanged.
The quotas changes resulted in the production reduction of about 1.4 million barrels per day, UBS Bank's commodity analyst Giovanni Staunovo estimated, with Russia, Angola, the Congo, and Nigeria all expected to see significant output cuts in the following year.
In addition, both Saudi Arabia and Russia pledged to voluntarily extend the output reduction of 500,000 barrels per day until the end of 2024, with the group's next meeting to be held on November 26 in Vienna.
