"We know that the OPEC+ meeting [on June 4] has decided to extend oil production cuts until the end of 2024. In early April, a number of countries have already announced production cuts. Moreover, Saudi Arabia has decided to reduce oil production by 1 million [barrels per day] starting July. Thus, the imbalance of supply and demand, as well as opacity are rising, which may result in oil prices remaining at a high level," Matsuno said.
The Japanese government is closely monitoring the developments on the global energy market and their impact on the Japanese economy, including price surges, he added.
OPEC+ agreed at the meeting on Sunday to adjust their cumulative production to 40.46 million barrels per day over January-December 2024. Russia said it would extend its voluntary production cut of 500,000 barrels per day until the end of 2024, while Saudi Arabia said it would make an extra 1 million cut to its daily production from July, on top of a 500,000 cut that was likewise extended through December 2024.