Oil-producing nations Saudi Arabia and OPEC announced on Sunday that they would jointly cut oil production by a total of 1.15 million barrels per day. From this May until the end of the year to support market stability
an announcement reduce oil production oh OPEC member a surprise to the market as most believe Petroleum producing and exporting countries These will fulfill their promise to go ahead and maintain capacity cuts. to 2 million barrels a day in the online meeting of the group’s ministers. including ministers from Russia That will happen this Monday (April 3)
In October 2022, OPEC Plus, which includes the original 13 OPEC member states, and other allies with Russia present Agreed to cut oil production by 2 million barrels per day from November 2022 until the end of 2023, a decision that was angering the US government. because of the smaller amount of oil It will make the price of oil even higher. And the more it will have the effect of blowing inflation even higher.
At the time, the US argued that the world needed to see oil prices fall to help support economic growth and to prevent Russian President Vladimir Putin from swapping oil exports to promote the next Russian war in Ukraine.
News reports indicate that the announcement of further production cuts by OPEC Plus was not out of the question this time. Refers to a number of reductions in production that are higher than the levels that have been in place since the end of last year (2022).
OPEC Plus said in a statement: The government of Saudi Arabia will cut oil production by 500,000 barrels per day. While Iraq will reduce its production by 211,000 barrels per day. Other member nations such as the United Arab Emirates (UAE), Kuwait, Algeria and Oman have also pledged to cut production.
Russian Deputy Prime Minister Alexander Novak said on Sunday (April 2) that Moscow would extend its 500,000 barrels per day cut in oil production until the end of the year. After announcing a reduction in their own production in February This is when Western nations have taken measures to control the Russian oil price ceiling.
US government officials have come out to comment on that time. Russia’s alliance with other OPEC members is likely to be on the wane. But from this latest announcement from OPEC Plus, it shows that OPEC Plus membership is as tight as ever.
Reuters reports, citing a statement from the Saudi energy ministry. Saudi production cuts It is a precautionary measure intended to support the stability of the oil market.
Global oil prices recently hit a 15-month low following a banking crisis following the collapse of two US banks and the divestment of Credit Suisse to UBS Bank (UBS), Switzerland’s largest financial institution.
Analysts await the latest stance of OPEC and its allies. The price of oil, which is currently around $80 per barrel. Moved higher by PVM, a comment oil broker Oil prices could rise another $3 a barrel, but some, like investment firm executive Pickering Energy Partners, believe oil prices could rise as much as $10.