Saudi Arabia, United Arab Emirates (UAE), Kuwait, Iraq and Oman announced this Sunday that, from the month of May and until the end of 2023, they will apply a “voluntary” reduction of the production of Petroleum additional to that 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” from 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.
“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 “support the 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 policy of reduction.”
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.