Brent oil rose over $84 as OPEC+ extended voluntary supply cuts

Avatar photo

Vrasidas Neofytou
Head of Investment Research

See all articles
Brent oil rose over $84 as OPEC+ extended voluntary supply cuts

Brent and WTI crude oil prices hit a fresh yearly high of nearly $84.70/b and $80.50/b respectively on Monday morning after the OPEC+ group extended its voluntary oil supply cutbacks to the middle of the year in a bid to avert a global surplus and support higher crude oil prices.

Brent crude oil, 4-hour chart

In a well-expected move, heavyweights Saudi Arabia and Russia, alongside several other key OPEC+ producers decided on Sunday to extend their 2.2 million bpd voluntary production cut by another fiscal quarter (until the end of Q2-June 2024). (Source:

The voluntary 2.2 million barrels per day supply cut by some OPEC+ producers is separate from the group’s official strategy, in which the OPEC+ countries had held a formal policy of collectively reducing their output by 3.63 million barrels per day until the end of 2024, back in November 2023.

As a result, the OPEC+ alliance had agreed to cut a total of about 5.86 million bpd, equal to about 5.7% of daily world demand, according to Reuters calculations. (Source:

The extension of the voluntary supply cut until the middle of the year was necessary to offset a seasonal reduction in world fuel consumption (a weaker demand for petroleum), together with the surging crude oil production from several of OPEC+’s rivals, including the U.S. shale drillers, Canada, Brazil, Guyana, and other smaller oil producers outside of the OPEC+ alliance.

Crude oil prices fell as low as $70/b in December 2023 due to softer fuel demand from the world’s top crude importer, China, due to an economic and property crisis, despite the OPEC+ supply cuts and the persistent geopolitical risk in the Middle East.

Saudi Arabia, de facto leader of the OPEC-Organization for the Petroleum Exporting Countries, will extend its voluntary crude production cut of 1 million barrels per day until the end of the second quarter, keeping the crude production to around 9 million bpd.

Russia will also cut oil production and exports by an additional 471,000/bpd for the same period, adding to the pledge for a volunteer export cut by a slightly higher 500,000/ bpd in the first quarter of 2024.

Hence, the other OPEC key producers Iraq and UAE will also prolong their voluntary production cuts of 220,000/bpd and 163,000/bpd, respectively, for the same period.

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

Read our detailed Marketing Communication Disclaimer



Explore the ways in which we can help you achieve your investment goals.











Prime Fund