Saturday, 2 March 2024

Japanese Petroleum Association expects OPEC+ to extend oil ‎cuts ‎

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The head of the Japan Petroleum Industry Association said on Monday that he expects OPEC+ to extend supply cuts after December to support oil prices.

According to Reuters, three OPEC+ sources said that the alliance is scheduled to study whether to impose additional oil cuts when it meets on November 26, after crude prices declined by about 20% since late September. The OPEC+ alliance consists of the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia.

“At the very least, the current production cuts are likely to continue,” Shunichi Kito, head of the Japan Petroleum Industry Association, said in a press conference, including additional production cuts from Saudi Arabia and Russia, noting that Saudi Arabia wants to keep oil prices above $80 a barrel. .

He added, “We do not know whether greater production cuts will be imposed.”

Saudi Arabia, Russia and other OPEC+ members pledged that the total reduction in oil production would be 5.16 million barrels per day, or about 5% of the total global demand for oil, in a series of steps that began in late 2022. The cuts include 3.66 million barrels per day of On the part of OPEC+ and additional voluntary cuts from Saudi Arabia and Russia

Kitto stated that the Union expects Dubai oil prices to remain in a range between $80 and $95 per barrel next month. Keto also holds the position of president of the Idemitsu Kosan Oil Refinery

When asked about the Yemeni Houthi group’s seizure of a ship in the Red Sea, Kitto said that this has no direct impact on oil supplies to Japan, supplies of which 95 percent depend on imports of crude oil from the Middle East.

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