2024-03-04 04:42:49
Several OPEC+ countries have announced that they are extending their oil production cuts for another three months to stimulate the market, world agencies reported.
Riyadh and Moscow, which are pillars of the alliance of oil-exporting countries, announced today that, together with other members, they are extending until the middle of the year voluntary cuts to support market rates undermined by economic uncertainty, BTA reported.
Saudi Arabia will continue to cut output by 1 million barrels of oil per day until June. Russia also extended cuts by 471,000 barrels of oil per day.
In both cases, these measures are added to the 500,000 barrel per day cut announced in April last year and continuing until the end of this year, according to AFP.
Riyadh is relying on the high price of oil to finance its major economic diversification project aimed at weaning the country off its dependence on crude oil exports.
For Moscow, under Western sanctions, the high price of oil is essential to finance its military offensive in Ukraine. Russia is also reorienting its exports to China and India. Iraq, the United Arab Emirates, Kazakhstan and Kuwait also followed suit.