Saudi Arabia and OPEC member oil producing nations announced on Sunday that All countries will jointly reduce oil production by 1.15 million barrels per day. from this May until the end of the year to support market stability
The announcement of the OPEC member surprised the market quite a bit. because most believe The oil-producing nations will follow through on their promises to just go ahead and maintain output cuts at 2 million barrels a day at an online meeting of the bloc’s ministers, including those from Russia. that will take place this Monday
in October of last year OPEC Plus, which includes the original 13 member states and other allies with Russia as well. It agreed to cut oil production by 2 million barrels per day from November 2022 until the end of 2023, a decision that angered Washington. Because the amount of oil is reduced, the price is even higher.
At the time, the United States argued that the world needed to see oil prices fall to help bolster economic growth and to prevent Russian President Vladimir Putin from raising more money for the war effort. in Ukraine
OPEC+’s announcement of production cuts without any demands means Production cuts figures skyrocket from levels in place since late last year.
OPEC Plus said in a statement: The Riyadh government will cut oil production by 500,000 bpd, while Iraq will cut its output by 211,000 bpd.
Meanwhile, Russian Deputy Prime Minister Alexander Novak said on Sunday Moscow will extend oil production cuts by 500,000 barrels per day until the end of the year. After announcing a reduction in their production alone in February after the western countries issued measures to control the price ceiling
After Russia announced its decision to reduce its own oil production US government officials come out to comment Russia’s alliance with other OPEC members is likely to be on the decline. But this latest OPEC Plus announcement shows that The members of the group are still as tight as ever.
A statement from the Saudi Ministry of Energy said: Its production cuts are a precautionary measure aimed at bolstering oil market stability.
Global oil prices hit a 15-month low recently following a banking crisis following the collapse of two US banks and the divestiture of Credit Suisse. with UBS Bank (UBS), Switzerland’s largest financial institution
- source: Reuters
