OPEC+ considers new production cuts, baselines: Report

Logo of OPEC

OPEC countries and their allies (OPEC+) intend to meet today, June 4, to discuss a new agreement.

The potential agreement may include revised production cuts and adjustments to members’ output baselines for up to 2024, Reuters reported, citing four informed OPEC+ sources. 

The additional production cuts are on the table for discussion, among other proposals, during today's meeting. 

The potential cuts could reach one million barrels per day, in addition to the current reductions of two million barrels and the voluntary cuts of 1.6 million barrels that came into force last May. 

Moreover, OPEC+ will consider the issue of baselines for 2023 and 2024, through which each member country will make the cuts. 

The UAE insists on raising the baselines in line with the increase in its production capacity. However, this means that its share in the total reductions may shrink, the report said.