As you probably know, OPEC held another summit in Vienna on Wednesday. As the result of the mentioned OPEC summit, they agreed to cap their oil production at 32,5 million barrels a day. Given the latest production figures coming from OPEC, they cartel is going to cut their total oil production by as much as 1.2 million barrels per day to avoid exceeding the 32,5-million-bpd threshold. At the same time, the cartel expects Russia and some other big oil producers to cut their oil production as well.
At the same time, Saudi Arabia is reported to have compromised by letting Iran stop increasing its oil production as soon as it reaches the level seen before the Western sanctions were imposed on Iran a couple of years ago. In return, the Saudis are going to be the OPEC nation with the biggest oil production cuts among its fellow OPEC members. As we have just said, OPEC’s total productions cuts are expected to reach 1.2 million barrels per day. Saudi Arabia will make 0.5 million bpd of those cuts to make its daily oil production shrink all the way down to 10,06 million barrel per day. Iran is expected to cap its oil production at 3,797 million bpd. The remaining OPEC members are also going to contribute to the cuts.
At the same time, non-OPEC members are also expected to cut their oil production. Their summit is planned for December 9th in Doha, Qatar. For now, the Saudi Arabian Minister of Energy says that non-OPEC members are expected to cut their oil production by as much as 600K bpd, with 300K bpd cut by Russia, the biggest non-OPEC oil producer in the world. Vipro Markets.
