OPEC+ voluntary cuts may shrink in the second half of 2024
Mr. Choeib Boutamine
March 18, 2024
Mr. Choeib Boutamine, energy expert and CEO of Ranadrill, has said to Attaqa-energy-platform that if oil prices stabilize at $85 by the end of the second quarter of 2024, it will not be in the coalition’s interest to extend OPEC+’s voluntary cuts of around 2.2 million barrels per day.
He stressed that it was better to reduce them to less than 1.5 million barrels per day, given that the market will automatically get enhanced in the third quarter of the year during the summer season when demand for oil and gas increases due to the increase of travel around the world.
The CEO of Ranadrill also attributed the increase in oil demand to climate change, as high temperatures increased the demand for cooling devices, especially that many countries rely on oil to generate electricity locally (though partially) such as Saudi Arabia.
Mr. Choeib Boutamine “If the alliance wants the prices to reach $90 in the summer, it will need to extend the current voluntary cuts, but other countries will increase their production, and the result is that oil prices will fall again in the fourth quarter of the year, and an excessive increase in supply may take place”.
