Surprise.. Opec+ announces cuts in oil production
"supporting market stability" ..Group of oil producing nations says cut of 1.15m barrels a day.
Shrouq
Several oil-exporting countries within the “OPEC Plus” alliance announced a voluntary cut in oil production, from next May until the end of 2023, in a move aimed at “achieving balance in the oil market".
These countries include Saudi Arabia, the UAE, Russia, Iraq, Kuwait, Oman, Algeria and Kazakhstan.
United States commented
United States commented on the announcement by several oil-exporting countries within the “OPEC Plus” alliance, of a voluntary cut in oil production.
US National Security Council spokesman John Kirby said, "The Biden administration will continue to work with all producers and consumers to ensure that the oil market supports economic growth and lower prices for American consumers," according to Reuters news agency.
Last October, OPEC Plus cut production by about two million barrels per day, and expectations were that the alliance would maintain this level at its meeting scheduled for tomorrow, Monday.
Raise global oil prices
The head of the investment company, Pickering Energy Partners, Dan Pickering, said that an unexpected reduction in production by OPEC producers by 1.15 million barrels per day may raise global oil prices by $ 10 a barrel.
OPEC+ member states decided to announce a reduction in their oil production until the end of this year. Saudi Arabia and Russia will implement the largest production cuts.
Several countries reduce their oil production
Many countries announced a reduction in oil production, including:
- The Kingdom reduces its crude oil production by 500,000 barrels per day
- Iraq voluntarily reduces oil production by 211 thousand barrels per day
- Algeria reduces its oil production by 48 thousand barrels per day
- Kuwait voluntarily reduces its oil production by 128 thousand barrels per day
- The Sultanate of Oman voluntarily reduces oil production by 40,000 barrels per day
- The United Arab Emirates will voluntarily reduce its oil production by 144,000 barrels per day
- Russia has extended its oil production cut by 500,000 barrels per day
