Following the conclusion of its June 4 Ministerial meeting, OPEC and its allies (OPEC+) announced in a statement that they have reached a deal, agreeing to a new output target of 40.46 million barrels per day (mb/d) from 2024.

The statement reported that the next OPEC+ meeting will take place on November 26th in Vienna, adding that Russia, Angola and Nigeria to all see significant production target cuts in 2024.

In response, Russia’s Deputy Prime Minister Alexandar Novak said, Russia's voluntary output cuts remain at 500 b/d, extending voluntary output cuts through 2024.

Additional quotes

“OPEC+ agrees to total oil output cuts of 3.66 mb/d.”

“We're closely watching China's recovery post-covid.”

“We have the possibility of tweaking our decisions.”

Market implications

WTI is likely to see a bullish opening gap, extending Friday’s upsurge in reaction to the OPEC+ announcement. The US oil closed Friday nearly 2.50% higher at around $71.90.