The members of the Organization of the Petroleum Exporting Countries and their allies (the so-called OPEC+ group) decided today to leave the current production cut agreement unchanged, leaving the decision on whether or not to extend the current voluntary production cuts by some countries, which will remain in force for the first quarter of the year, until March, Reuters reported, citing two cartel sources.

The current OPEC+ agreement provides for a joint supply cut - which will also last until 2024 - of around 3.66 million barrels/day. However, last November, the cartel and its allies announced an extra effort to withdraw barrels from the market, so that the lower supply would sustain the prices of "black gold" - and this took the form of voluntary production cuts of around 2.2 million barrels per day, to take effect between January and March 2024, with Saudi Arabia leading this effort.

In fact, Saudi Arabia has voluntarily and unilaterally decided to reduce its supply by another million barrels a day, and Russia has also announced an extra 500,000 barrels a day. The idea was that this additional effort would be in force during the first three months of 2024 - and today that commitment was reiterated.

The two sources quoted by Reuters said that these cuts will be reviewed in March and that an announcement will be made at that time. The next formal OPEC+ meeting is scheduled for April 3.

The group of crude oil producers and exporters thus decided on the status quo, following the recommendation of the OPEC+ Joint Ministerial Monitoring Committee (JMMC).

The prices of "black gold" are now on the rise, encouraged by this announcement. West Texas Intermediate (WTI), the benchmark for the United States, continues to rise by 0.87% to 76.51 dollars per barrel. North Sea Brent, the crude traded in London and the benchmark for European imports, rose 0.72% to 81.13 dollars.

Prices have been supported at the start of the year by the expectation that central banks will begin a cycle of cuts in key interest rates, as well as by the increase in geopolitical tensions, namely the attacks by the Houthis in Yemen on vessels - such as oil tankers - passing through the Red Sea towards the Suez Canal.