Saudi Arabia, United Arab Emirates (UAE), Kuwait, Iraq and Oman this Sunday, from May until the end of 2023 “voluntary” reduction of production Oil In addition to what was already agreed upon at the OPEC meeting at the end of last year, official sources reported.
In this way, Saudi Arabia will apply an additional cut of half a million barrels per day; Emirates of 144,000 barrels per day; Kuwait 128,000 barrels per day; Iraq with 211,000 people; and Oman, respectively SPA, WAM, KUNA, INA and ONA, according to the official news agencies of these Arab countries.
In addition, these “voluntary” discounts agreed “in coordination with some other participating countries” from OPEC+, which they did not specify.
Last October, the OPEC countries agreed to cut crude oil production by two million barrels a day by the end of 2023.
“This voluntary cut is in addition to the production cut agreed at the thirty-third Ministerial Meeting of OPEC+ last October,” the Saudi and UAE agencies added, adding that the purpose of this “precautionary measure” is: “Supporting the stability of the oil market”.
Iraq’s Oil Ministry also stated that the cut was adopted to “address the challenges facing the world oil market and strike a balance between supply and demand”.
He also reminded that this new measure has been taken. “so that it does not conflict with the previous mitigation policy.”
The decision came on the eve of a committee led by the Saudi Arabian and Russian-led OPEC+ oil alliance to evaluate, by teleconference, whether the current market situation justifies a realignment of the joint crude oil supply.