Dubai: Saudi Arabia and other OPEC+ oil producers on Sunday (April 2) voluntarily increased production to about 1.15 million barrels per day (bpd) in a surprise move aimed at helping stabilize the market. announced production cuts.
The group was largely expected to stick to the already agreed 2 million bpd cut when a ministerial panel including Saudi Arabia and Russia meets virtual on Monday.
Last October, OPEC+, a group of the Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allies, agreed to cut production by 2 million bpd from November through the end of the year, angering Washington that tight supplies would push up oil prices. rice field.
The United States argues that the world needs lower prices to support economic growth and prevent Russian President Vladimir Putin from earning more to fund the war in Ukraine.
The unexpected voluntary cuts on Sundays starting in May add to those already agreed in October.
Riyadh said it would cut production by 500,000 bpd and Iraq by 211,000 bpd, according to an official statement.
The United Arab Emirates (UAE) said it would cut production by 144,000 bpd, Kuwait announced a 128,000 bpd cut, Oman announced a 40,000 bpd cut, and Algeria cut production by 48,000 bpd. said to do. Kazakhstan also cuts production by he 78,000 bpd.
Russia’s Deputy Prime Minister Alexander Novak also said on Sunday that Moscow would extend voluntary cuts of 500,000 bpd until the end of 2023.
After Russia’s unilateral cuts, US officials said alliances with other OPEC members were weakening, but Sunday’s move showed cooperation remains strong.
Saudi Arabia’s energy ministry said in a statement that the kingdom’s voluntary cuts were precautionary measures aimed at helping stabilize oil markets.
Oil prices plunged to a 15-month low last month in response to the banking crisis that followed the collapse of two US financial institutions, with Credit Suisse bailed out by Switzerland’s largest bank UBS.
“OPEC is taking precautionary measures in case demand may decline,” Amrita Sen, founder and director of Energy Aspects, said on Sunday.- Reuters
