OPEC + cuts oil production

On Sunday, Riyadh announced a voluntary cut in oil production by 500,000 tons. barrels per day from May to the end of 2023. In a statement reported by Reuters, the Saudi Energy Ministry described the move as a precautionary measure to ensure the stability of the oil market.

In parallel with Saudi Arabia, similar steps were taken – also from May to the end of this year – by other oil producers associated with OPEC +. Reuters reported that Iraq plans to cut domestic oil production by 211,000 tons. Barrels per day UAE – by 144 thousand. Barrels per day, Kuwait – by 128 thousand. Barrels per day, Algeria – with 48 thousand. Barrels per day, Oman – at 40 thousand. barrels per day.

On Sunday, Kazakhstan also announced a reduction in its oil production from May to the end of the year – by 78,000 tons. barrels per day. The country’s energy ministry said the move was agreed upon with other members of OPEC+ and is “an additional remedial measure in addition to the cuts agreed upon at the 33rd OPEC ministerial meeting held on October 5, 2022.”

Shortly after the publication of Saudi Arabia’s decision and other OPEC+ countries, Russia’s Deputy Prime Minister, Energy Minister Alexander Nowak, announced that the country would extend oil production cuts in force since March by 500,000 tons until the end of the year. barrels per day. Still on March 21, Nowak announced that it was originally announced in February this year. Production limits will remain in place until the end of June, and on March 24 it claimed that the Russian Federation was close to its production target of 9.5 million barrels per day, Reuters reported.