The OPEC+ has extended voluntary cuts to the 2nd quarter 2024

Yesterday; the Opec+ re confirmed the extension of the actual voluntary cuts of 2.2 mbd to the 30th of june 2024 , Note that a collective cut of 3.66 mbd still valid till dec 2024 . 75% of the Opec ( not plus) are members of the GECF ,its summit just ended up a couple of days ago in Algiers. ** Voluntary cuts: Saudi Arabia 1.00 mbd-Russia 0.471 mbd Iraq 0.22mbd-UAE 0.163 mbd -Kuwait 0.135 mbd- Algeria 0.051 mbd-Oman 0.042 mbd- Kazakhstan 0.082 mbd a Total of 2.164 mbd. Saudi arabia and russia represent 68% of the cuts. Algeria is the only african country participating in cuts even its ranked the 4th producer in the african continent . Saudi arabia represents 47% of the cuts, russia 21%. READ ALSO Will oil prices rise again, following the drop resulted from OPEC policies and high demand? Attracting major producers to the Algiers summit of GECF is of great importance to the forum *** Three Months ago; In the beginning of Dec brent prices settled around 74.5 $ ( time voluntary cut did not take effect), Today prices are hovering at 83 $ , this bullish tendency is maily due to some factors: 1. Oil prices below 80 $ opened the appetite of consumers and drove investors to a comfort zone. 2. The voluntary cuts of the Opec+ applied since the 1st of Jan 2024 shrank the existing oil Glut even slightly but steadily. 3. No sign of truce in Gaza and the palestenian territories means still have a risk margin adding to that risks of more attacks with drones on the russian oil facilities. 4. China Stimilus , India demand on oil is increasing remarkebly, reports are showing India Oil product increased by 8.2% in last jan. 5. Low Natural gas prices could trigger demand on oil but why: suitable gas prices will encourage manufactories in germany and other countries to resume their activities which will attract related sectors such transportation , petrochemustry ,, etc those are relying on Oil. 6. Inflation is gradually edging down gave a sentiment to reduce interest rates , positive indicator for the investors .