Riyadh (EFE).- Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Iraq and Oman announced today that, starting in May and until the end of 2023, they will apply a “voluntary” reduction in additional oil production to the one already agreed at the OPEC meeting at the end of last year, official sources reported.
In this way, Saudi Arabia will apply an additional reduction of half a million barrels per day; Emirates of 144,000 barrels per day; Kuwait of 128,000 barrels per day; Iraq of 211,000; and Oman of 40,000, according to the official news agencies of these Arab countries: SPA, WAM, KUNA, INA and ONA, respectively.
They also pointed out that these “voluntary” reductions have been agreed “in coordination with some other participating countries” of OPEC+, which they did not specify.
Last October, the OPEC countries agreed to reduce crude oil production by two million barrels per day until the end of 2023.
Balance between supply and demand in OPEC
“This voluntary cut is in addition to the reduction in production agreed at the thirty-third Ministerial Meeting” of OPEC+ held last October, indicated the Saudi and Emirati agencies, adding that this “precautionary measure” has the objective of “supporting stability of the oil market.
The Iraqi Oil Ministry, for its part, indicated that the cut has also been agreed to “address the challenges facing the world oil market and achieve a balance between supply and demand.”
He also recalled that this new measure was taken “so that it does not contradict the previous reduction policy.”
This decision comes on the eve of a committee of the OPEC+ oil alliance, led by Saudi Arabia and Russia, to assess in a teleconference whether the current market situation justifies a readjustment of their joint crude supply.
Russia also extends the reduction in crude oil production until the end of 2023
Russia announced today that it will also extend until the end of the year the voluntary cut in production of 500,000 barrels of crude oil that it had already extended once until June, Deputy Prime Minister Alexander Novak said in a statement.
The person in charge of the negotiations with the OPEC+ alliance explained that the global oil market is currently going through a period of high volatility and unpredictability due to the current banking crisis in the US and Europe, global economic uncertainty and “unpredictable and myopic” energy policy decisions. .
“At the same time, predictability in the world oil market is a key element in ensuring energy security,” stressed the Deputy Prime Minister of the Russian Federation.
Russia has already extended until the end of June the production cut of 500,000 barrels per day initially announced only for the month of March.
These voluntary reductions have been decided “in coordination with some other participating countries” of the OPEC+ alliance.
Last October, the OPEC countries gave the green light to reduce crude oil production by two million barrels per day until the end of 2023.
