Big oil exporting countries to reduce crude oil production till June

OPEC and allies agreed to extend the current deal to reduce crude oil production till Jube

by Lorenzo Ciotti
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Big oil exporting countries to reduce crude oil production till June
© Getty Images / Handout Getty Images

Saudi Arabia, Algeria, Kuwait have decided to continue cutting the volume of barrels per day for another 3 months.

OPEC members and their OPEC+ allies have agreed to extend the current deal to reduce crude oil production until mid-2024 to avoid oversupply.

Until the end of June and that 2 million 413 thousand barrels of oil will be produced per day by cutting 135 thousand barrels.

Furthermore, Russian Deputy Prime Minister Alexander Novak said that his country will increase the voluntary reduction of oil production and exports by 471 thousand barrels per day in the second quarter of this year.

"Algeria will cut daily oil production by 51 thousand barrels and that the expected daily production will be 908 thousand barrels."

The outage has been extended until the end of June and production will be 9 million barrels per day, an official at Saudi Arabia's Energy Ministry said.
Algeria's Ministry of Energy itself informed consumers about the cut in oil production.

Oil
Oil© David McNew / Staff Getty Images
 

The last crude oil reserves 

The determination of reserves is conditioned by technical and economic uncertainties. The technical uncertainties arise from the fact that the volumes of hydrocarbons contained in the reservoir are estimated almost exclusively through data obtained with indirect methods. Direct information is necessarily little, compared to the heterogeneity of reservoir rocks, as it comes from well drilling, which is very expensive.

Economic uncertainties include the difficulty of being able to predict the future trend of extraction costs and sales prices of the hydrocarbon. The commercial availability of new extraction technologies is also difficult to predict with complete certainty. T

he level of uncertainty on reserves is therefore maximum when potential new deposits are estimated, decreases at the moment of their discovery through well drilling, and during the production period and becomes zero when the reserves that can be produced from the field are eliminated as all the extractable hydrocarbons are actually been produced.

After extraction, the oil is transported via pipelines or tankers to the site where the refining will take place. Each tanker can transport a quantity of oil that generally varies from 100,000 to 3 million barrels. In the case of overland transport, the oil can be pumped through pipelines or it is possible to use rail cars designed specifically for this use.

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