OPEC+ members to reduce oil production from May

Members of the OPEC+ alliance yesterday announced a voluntary reduction in their crude oil production from May until the end of 2023.

This came in separate statements issued by Saudi Arabia, Algeria, Iraq, Oman, the UAE, Kuwait and Russia, a day before a planned OPEC+ meeting.

A reliable source in the Saudi Ministry of Energy stated that the kingdom will implement a voluntary reduction in its crude oil production, amounting to 500,000 barrels per day, in May until the end of the year.

The Saudi Press Agency (SPA) quoted the Ministry of Energy’s statement saying the decision was made in coordination with several participating countries in the Declaration of Cooperation; both OPEC members and non-members.

The source – whose name was not mentioned in the statement – explained that this voluntary production reduction is in addition to the production cut agreed upon at the ministerial meeting of OPEC+ on 5 October 2022.

He confirmed that this step is a precautionary measure to support the stability of oil markets.

Algeria announced on Sunday that it will voluntarily reduce its oil production by 48,000 barrels per day in May. While the Ministry of Energy in Oman said on Twitter that the Sultanate will voluntarily reduce its oil production by 40,000 barrels per day.

Sultanate of Oman will implement a voluntary cut of 40k barrels per day of crude oil from May 2023 till the end of 2023 in coordination with some OPEC and non-OPEC Participating Countries in the Declaration of Cooperation. pic.twitter.com/E06FfIU33b

— وزارة الطاقة والمعادن (@memgovom) April 2, 2023

The Iraqi Ministry of Oil stated oil production would be cut by 211,000 barrels per day, while the UAE announced a reduction of 144,000 barrels per day.

Kuwait announced a reduction of 128,000 barrels per day and Russia said today that it would also reduce its production by 500,000 barrels per day.

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