Saudi Arabia and a number of other OPEC+ countries on April 2 announced a further cut in oil production by about 1.16 million barrels per day.
Source: Reuters
Details: It is noted that the restrictions will come into force in May and will last until the end of 2023.
The latest production cut could push oil prices up $10 a barrel.
Saudi Arabia said it voluntarily cut production by 500,000 bpd to keep the oil market stable.
“OPEC is taking precautionary measures in case of a possible reduction in oil demand,” said Amrita Sen, director of Energy Aspects.
The administration of US President Joe Biden said it considers the move announced on April 2 by oil producers to be inappropriate, the newspaper writes.
“We do not believe that cuts are appropriate now, given the uncertainty in the market, and we have made this clear,” said a spokesman for the US National Security Council.
It is reported that Iraq will reduce production by 211 thousand barrels per day, the UAE – by 144 thousand, Kuwait – by 128 thousand, Oman – by 40 thousand, Algeria – by 48 thousand, Kazakhstan – by 78 thousand, Gabon – by 8 thousand, and the Russian Federation will continue the voluntary reduction in production by 500 thousand barrels per day until the end of the year.
Some OPEC+ members have not joined the cuts because they have long been producing oil well below agreed levels due to a lack of production capacity.
Recall: In October, key OPEC+ ministers agreed cut oil production by 2 million barrels per day.
