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Saudi, UAE, Kuwait, Oman To Slash Oil Output in 2024

Opec+ members including Saudi Arabia, UAE, Kuwait and Oman have agreed to voluntarily cut oil output in the first three months of 2024.

In total Opec+ oil ministers announced more than 2m barrels per day of production cuts in the first three months of next year.

The UAE and Saudi Arabia both revealed voluntary production cuts following a meeting of Opec+ members.

An official source from Saudi Arabia’s Ministry of Energy announced that the Kingdom will extend its voluntary cut of one million barrels per day, which was implemented in July 2023, until the end of the first quarter of 2024 in coordination with some OPEC+ participating countries.

Therefore, the Kingdom’s production will be approximately 9m barrels per day until the end of March 2024. Afterwards, in order to support market stability, these additional cut volumes will be returned gradually subject to market conditions. This voluntary cut is in addition to the voluntary cut of 500,000 barrels a day previously announced by the Kingdom in April 2023, which extends until the end of December 2024.

The source confirmed that this additional voluntary cut comes to reinforce the precautionary efforts made by OPEC Plus countries with the aim of supporting the stability and balance of oil markets.

oil prices

The United Arab Emirates, meanwhile, said it will implement an additional voluntary cut of 163,000 barrels per day starting January 1, 2024 until the end of March 2024.

Therefore, the UAE’s production will be 2.9m barrels per day until the end of March 2024. This voluntary cut is in addition to the voluntary cut of 144,000 barrels per day previously announced by the United Arab Emirates in April 2023, which extends until the end of December 2024.

Kuwait said it will voluntarily cut crude oil output by 135,000 barrels per day for three months starting January 1, 2024. First Deputy Prime Minister and Minister of Oil Dr. Saad Al Barrak said Kuwait’s oil production will stand at 2.413m bpd until the end of March 2024.

Al Barrak said that this is an additional reduction to the previously announced by Kuwait in April 2023 and estimated at 128,000 bpd until the end of 2024.

The Sultanate of Oman announced an additional crude oil voluntary reduction of 42,000 barrels per day with effect from January 2024 until the end of March 2024. The Ministry of Energy and Minerals explained that this additional reduction is in pursuance of the previous voluntary reduction of 40,000 barrels per day until December 2024.

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Arabian Business

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