The Azerbaijan State News Agency

WORLD

OPEC+ discussing deepening oil production cuts, sources say

OPEC+ discussing deepening oil production cuts, sources say

Baku, June 3, AZERTAC

OPEC and its allies are discussing deepening oil production cuts, possibly by as much as 1 million barrels per day, three sources told Reuters on Friday as oil prices fell towards $70 per barrel and market analysts spoke of a new supply glut, according to Reuters.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world's crude, meaning its policy decisions can have a major impact on oil prices.

Three OPEC+ sources said cuts were being discussed among options for Sunday, when OPEC+ ministers gather at 2 p.m. in Vienna (1200 GMT). Before then, OPEC ministers will meet at 11 a.m. on Saturday.

The sources said cuts could amount to 1 million bpd on top of existing cuts of 2 million bpd and voluntary cuts of 1.6 million bpd that was announced in a surprise move in April.

If approved, it would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand. Earlier, two OPEC+ sources said they did not expect the group to agree further cuts.

Western nations have accused OPEC of manipulating oil prices and undermining the global economy through high energy costs.

In return, OPEC officials and insiders have said the West's money-printing over the last decade has driven inflation and forced oil-producing nations to act to maintain the value of their main export.

"We will never hesitate to take any decision to achieve more balance and stability (on) the global oil market," Iraq's Oil Minister Hayan Abdel-Ghani said on arriving in Vienna.

The surprise output announcement in April helped to drive oil prices about $9 per barrel higher to above $87, but they swiftly retreated, under pressure from concerns about global economic growth and demand. On Friday, international benchmark Brent was trading around $76.

Last week, Saudi Arabia's Energy Minister Prince Abdulaziz said investors who were shorting the oil price should "watch out", which many market watchers interpreted as a warning of additional supply cuts.

Russian Deputy Prime Minister Alexander Novak, however, subsequently said he did not expect any new steps from OPEC+ in Vienna, Russian media reported.

The International Energy Agency expects global oil demand to rise further in the second half of 2023, potentially boosting oil prices.

Analysts at JP Morgan, however, said OPEC had not acted quickly enough to adjust supply to high levels of U.S. fuel output.

"Demand growth continues to be robust. Rather, there is simply too much supply... The alliance waited too long to reduce supply. The alliance - or at least some members - would likely need to cut more," analysts from JP Morgan said in a note.

Rapidan Energy Group analysts put the chances of a further cut at 40%.

"Ministers are determined to avoid a repeat of 2008, when a sudden collapse in global economic and financial stability sent crude prices from over $140 to $35 in six months," they wrote.

Share news on social media

Follow us on social network

Azerbaijan's Defense Ministry: Festive events in military units are held in closed conditions

Turkish president congratulates Russian counterpart Putin on reelection

Hikmet Hajiyev: Azerbaijan, China enjoy traditional ties of friendship and partnership

Apple, Google in talks to bring Gemini AI to iPhones: Report

Marie Sahba: I strive to build cultural bridges between our native peoples through my music and lyrics - INTERVIEW

Jens Stoltenberg: We are now in the process of agreeing a new framework for partnership between NATO and Azerbaijan VIDEO

Active dialogue between ruling parties significantly contributes to development of Azerbaijan-China relations

Magic of Novruz at Baku airport: carpets, airplanes, and national values

AZAL staff plants over 600 trees in support of “Green World Solidarity Year”

Azerbaijani female shooter clinches silver medal in Germany

Azerbaijani ambassador attends event marking 109th anniversary of Canakkale Victory

Message of congratulation to the people of Azerbaijan on the occasion of Novruz holiday

Azerbaijani table tennis players bring ten medals from Türkiye

ANAS Institute of Oriental Studies, Moscow Islamic Institute ink MoU

Azerbaijani FM meets with NATO Secretary General

Azerbaijan, US discuss bilateral and multilateral cooperation agenda

International Turkic Academy expands international relations

President of Azerbaijan: Everyone must reckon with us from now on

President Ilham Aliyev discloses several facts about Khankendi’s being the land of Azerbaijan

Central square of Khankendi named “Victory Square”

'Canakkale is impassable' immortalized when Turkish Navy defeated most advanced armies: President Erdogan

President: Today, Azerbaijan is one of a handful of countries in the world with a completely independent policy

President of Azerbaijan: Regrettably, the outcomes of the Second Karabakh War did not serve as lesson to Armenia

President Ilham Aliyev: Anti-terror operation was a triumph of indomitable spirit of Azerbaijani people

President: We demonstrated tremendous heroism during the Second Karabakh War and the anti-terror operation

President Ilham Aliyev: It is the fourth time that I have lit the holiday bonfire in liberated lands of Karabakh

President Ilham Aliyev lit Novruz bonfire in the city of Khankendi and congratulated the people of Azerbaijan on the occasion of the holiday VIDEO

Chinese scientists design device to produce hydrogen from renewable sources

Ukrainian media: NATO Secretary General welcomes Azerbaijan’s support to Ukraine

Peace initiators in the South Caucasus

® Simplify business operations with Kapital Bank's free API Portal

Azerbaijan’s Defense Minister meets with NATO Secretary General VIDEO

Azerbaijan, Shanghai Cooperation Organization explore prospects for cooperation

Wildfire continues to spread in China's southern Sichuan province

Azerbaijan, China discuss bilateral cooperation

Global Terrorism Index 2024: Azerbaijan among safest countries in the world

NASA volunteers find fifteen rare “Active Asteroids”

® B2B Forum featuring Latvian, Estonian and Finnish companies held in Azerbaijan

NATO Secretary General Jens Stoltenberg concludes his visit to Azerbaijan

Release of the Press Service of the President

To His Excellency Mr. Vladimir Putin, President of the Russian Federation

Nervous system disorders found to be biggest cause of poor health

2 Japan astronauts to land on moon in NASA-led Artemis program

Putin gets 85.13% of vote in Moscow after all ballots counted

AZAL launches flights to another London airport

N. Korea fires multiple short-range ballistic missiles into East Sea: JCS

Oil prices surge in global markets

® “Baku Steel Company” CJSC starts the tender stage for the implementation of the SAP S/4HANA system

Azerbaijan relocates 34 more families to Fuzuli city VIDEO

Fenerbahce win at Trabzonspor in match marred by clashes

“Heritage in Stitches: A Journey Through Embroidery and Sewing Traditions of Uzbekistan” exhibition opens at the Heydar Aliyev Center
First Vice-President of Azerbaijan Mehriban Aliyeva and Assistant to the President of Uzbekistan Saida Mirziyoyeva attend the opening ceremony VIDEO

‘Cold blob’ of Arctic meltwater may be causing European heat waves

NATO Secretary General: COP29 will be an important milestone in fighting global warming VIDEO

NATO Secretary General: Azerbaijan and Armenia have an opportunity to achieve enduring peace

Jens Stoltenberg: I welcome that Azerbaijan is developing closer ties with several NATO allies VIDEO

President Ilham Aliyev invites Jens Stoltenberg to Azerbaijan to attend COP29 in November VIDEO

President: NATO-Azerbaijan partnership has already had a long history VIDEO

Azerbaijani President: Today, we are in an active phase of peace talks with Armenia

President Ilham Aliyev: There is a good chance for settlement of Azerbaijan-Armenia relations VIDEO

President Ilham Aliyev: Reforms in our Armed Forces have led to good results VIDEO

President Ilham Aliyev held expanded meeting over dinner with NATO Secretary General Jens Stoltenberg VIDEO

President Ilham Aliyev and NATO Secretary General Jens Stoltenberg made press statements VIDEO

President Ilham Aliyev held one-on-one meeting with NATO Secretary General Jens Stoltenberg VIDEO

NATO Secretary General Jens Stoltenberg arrives in Azerbaijan for official visit

China's auto exports soar 30.5 pct in January-February

US says it destroys Houthi UAVs in Red Sea

Azerbaijan defense minister expresses condolences to Pakistani side

11th Global Baku Forum on “Fixing the Fractured World” concludes

"Once-in-a-lifetime" devil comet will be easily visible this month

Azerbaijan, Uzbekistan praise development of bilateral relations

Azerbaijan`s Prime Minister meets with Nobel peace laureate Muhammad Yunus

First drug to treat common, lethal liver disease gets US nod

11th Global Baku Forum features “New Security Paradigm in the Age of AI, Drones and Cyberwarfare” panel meeting

Azerbaijani PM meets with his Georgian counterpart in Baku

Administrator of UN Development Programme: Azerbaijan's role and approach as President of COP29 are commendable

Georgian Prime Minister Irakli Kobakhidze concludes his official visit to Azerbaijan

President Ilham Aliyev held expanded meeting with Prime Minister of Georgia Irakli Kobakhidze VIDEO

President Ilham Aliyev and Prime Minister Irakli Kobakhidze made press statements VIDEO

Photo exhibition on "Protection of Azerbaijan’s cultural heritage: Austria’s contribution" unveiled in Vienna

Irakli Kobakhidze: Our partnership has reached excellent level

Georgian Prime Minister: Partnership and friendship between our countries hold significant importance on global stage

Prime Minister Irakli Kobakhidze: Azerbaijan-Georgia relations are built on a very solid foundation

President: Both Georgia and Azerbaijan possess significant renewable energy potential

President: Our energy projects will continue to ensure energy security of many countries

President of Azerbaijan: The International law norms must be the basis for each country and there can be no discrimination

President Ilham Aliyev: Azerbaijan and Georgia have always supported each other`s sovereignty

President Ilham Aliyev: Demand for Azerbaijan's energy resources continues to rise

President: Activation of Baku-Tbilisi-Kars railway will be beneficial for many countries

President: Trade turnover between Azerbaijan and Georgia increased by 15 percent last year

President Ilham Aliyev: Today, Azerbaijan and Georgia have become vital countries for Eurasia

President Ilham Aliyev held one-on-one meeting with Prime Minister of Georgia Irakli Kobakhidze VIDEO

President Ilham Aliyev: Georgia and Azerbaijan always stand by each other as two independent states

SOCAR President meets with World Economic Forum officials

BSEC PERMIS Secretary General: EU membership should align with strategic goals VIDEO

11th Global Baku Forum hosts panel on “Regional Perspectives: EU and its Neighbors”

11th Global Baku Forum hosts panel session on “Building Resilience to Global Challenges: Addressing Inequality, Resource Scarcity and Migration”

SpaceX launches 6,000th Starlink satellite on Friday night flight

US President Joseph Biden congratulates President Ilham Aliyev on Novruz holiday

Georgian Prime Minister pays tribute to Azerbaijani martyrs

Georgian Prime Minister Irakli Kobakhidze visits tomb of Great Leader Heydar Aliyev