Saudi Arabia, the United Arab Emirates, Kuwait, Iraq and Oman introduced a new phase of voluntary oil production reductions starting on the Sunday of this week, spanning May through the end of 2023. This move supplements the output cuts that were already agreed upon at the previous year’s OPEC meeting, as officially confirmed by the respective national agencies.
Under the plan, Saudi Arabia is set to reduce output by an additional half a million barrels per day, the UAE will contribute 144,000 barrels per day, Kuwait 128,000 barrels per day, Iraq 211,000 barrels per day, and Oman will participate with a comparable commitment. These figures were reported by SPA in Saudi Arabia, WAM in the United Arab Emirates, KUNA in Kuwait, INA in Iraq, and ONA in Oman, reflecting the coordination among major oil producers in the region.
The voluntary cuts are described as being implemented in coordination with other participating countries within the OPEC+ framework, though specifics of the participating nations were not disclosed by the agencies. This move follows the broader strategy to stabilize the oil market during a period of fluctuating demand and supply dynamics.
Last October, OPEC members agreed to curb crude oil production by two million barrels per day through the end of 2023. The current voluntary reductions are presented as an addition to that baseline, intended to further support price stability and market balance, according to official communications from the Saudi and UAE agencies. The measures are framed as precautionary, aimed at preventing excessive price volatility and ensuring a steady supply-demand alignment.
Iraqi authorities underscored that the cut serves to address ongoing global market challenges and to rebalance supply with demand. The purpose of this new measure, they noted, is to avoid conflicting with the previously established mitigation policy and to reinforce a coherent strategy among major producers.
The decision emerges just ahead of a teleconference of a committee led by the Saudi and Russian-backed OPEC+ alliance. The committee is set to evaluate, using current market data, whether the present conditions justify realigning joint crude supply. Analysts expect the outcome to influence the near-term trajectory of production quotas and pricing, with attention to how member states will harmonize actions across different market environments.