The Kingdom of Saudi Arabia and several countries in the OPEC + coalition announced an additional voluntary reduction in oil production – amounting to 1.649 million barrels per day – starting from next May until the end of 2023.
Today, Sunday, April 2, 2023, an official source in the Saudi Ministry of Energy stated that the Kingdom will implement a voluntary reduction in its oil production of 500,000 barrels per day, in coordination with a number of countries participating in the declaration of cooperation among OPEC + members.
The responsible source stressed that this step is a precautionary measure aimed at supporting the stability of oil markets, according to what was stated in the Saudi Ministry of Energy statement, which was reviewed by the specialized energy platform.
This voluntary production cut is in addition to the production cut agreed upon by the coalition countries at the 33rd ministerial meeting held on October 5, 2022.
Russia extends oil production cuts
For his part, Russian Deputy Prime Minister Alexander Novak announced today, Sunday, April 2, 2023, that his country will extend the oil production cut by 500,000 barrels per day until the end of the year.
“As a responsible market participant and as a precautionary measure against further market volatility, the Russian Federation will implement a voluntary cut of 500,000 barrels per day until the end of 2023 from the average level of production as assessed by secondary sources for February,” Novak said in a statement. .
The announcement means that Russia has now twice extended the production cuts that Novak first announced in February 2023, according to information monitored by the specialized energy platform, quoting Reuters.
Novak said, on February 10, that Russia will reduce its production by 500 thousand barrels per day in March, and on March 21, indicating that the reduction will continue until the end of June.
On March 24, Novak said that Russia was very close to reaching its production target, which he confirmed would be 9.5 million barrels per day.
For its part, Kazakhstan will implement a voluntary cut of 78,000 barrels per day from May until the end of 2023, in coordination with other countries participating in the Declaration of Cooperation, according to a press release published by the government, which was seen by the specialized energy platform.
The following table – prepared by the specialized energy platform – shows the oil production quotas for OPEC + countries from November 2022 to the end of this year, according to the production cut agreement agreed upon in October 2022:
Voluntary cuts from OPEC+ countries
In the same context, the UAE Minister of Energy and Infrastructure, Suhail Al Mazrouei, said that his country will voluntarily reduce its oil production by 144,000 barrels per day, starting from next May until the end of 2023, in coordination with some of the countries participating in the OPEC + agreement.
Al Mazrouei added, in statements reported by WAM news agency, that this voluntary cut is a precautionary measure that is taking place to achieve balance in the oil market, and also comes within the framework of the production cut agreed upon at the 33rd OPEC+ ministerial meeting held in October 2022.
For his part, Kuwaiti Oil Minister Badr Al-Mulla announced – in a press statement issued today, Sunday (April 2, 2023) – that his country will implement a voluntary cut of 128,000 barrels per day, starting from next May until the end of 2023, according to what it said. Kuwait News Agency.
The Sultanate of Oman also announced that it will make a voluntary cut of 40,000 barrels per day of oil, in the same period, according to a statement issued by the Ministry of Energy and Minerals, which was seen by the specialized energy platform.
And Iraq decided to voluntarily reduce its oil production by about 211 thousand barrels per day, starting from May until the end of 2023.
The Iraqi Ministry of Oil stated – in its statement – that the decision aims to take precautionary measures to meet the challenges facing the global oil market, and to achieve a balance between supply and demand and market stability.
For its part, Algeria will make a voluntary cut of 48,000 barrels per day, according to what was announced today, Sunday, by the Ministry of Energy and Mines.
The ministry indicated – in its statement, published by the APS – that “this voluntary cut is a precautionary measure that takes place in addition to the production cut agreed upon at the 33rd OPEC + ministerial meeting on October 5, 2022.”
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