Iraq, Algeria, Saudi Arabia, the United Arab Emirates and Kuwait announced oil production cuts on Sunday, with the Gulf oil giants citing a “precautionary measure” aimed at stabilizing the market.
Riyadh, Abu Dhabi and Kuwait will cut production by a total of 772,000 barrels per day (bpd) from May until the end of the year, the three Gulf countries said in statements issued by their respective official media. This is a “precautionary measure to support the stability of the oil market”, said a senior official of the Saudi Ministry of Energy, according to the official Saudi press agency SPA.
“A voluntary reduction”
Iraq, one of the main oil-producing countries, also announced on Sunday a reduction of 211,000 bpd in its production from May 1. Algiers, for its part, is carrying out “a voluntary reduction of 48,000 barrels per day, from May to the end of 2023, in coordination with certain member countries of OPEC and non-members of OPEC”, according to a press release from the Algerian Ministry of Foreign Affairs. Energie, taken over by the local agency APS.
Moscow – member of OPEC + – for its part announced to extend the reduction of its crude oil production by 500,000 bpd until the end of the year, according to a press release from the Deputy Prime Minister in charge of Energy, Alexandre Novak, who evokes a period of “uncertainty” on the black gold market.