The Saudi Ministry of Energy on Sunday announced it will voluntarily reduce its oil production by 500,000 barrels per day starting from May until the end of 2023 in coordination with other members of the oil producers’ alliance.
The Ministry said this is a precautionary measure aimed at supporting the stability of the oil market, adding that the “voluntary cut is in addition to the reduction in production agreed at the 33rd OPEC and non-OPEC Ministerial Meeting on October 5, 2022.”
Several other OPEC+ countries also announced output cuts by the end of the year; the United Arab Emirates – by 144,000 barrels a day, Iraq – by 211,000 barrels a day, Kuwait – by 128,000 barrels a day, Oman – by 40,000 barrels a day, Algeria – by 48,000 barrels a day, and Kazakhstan – by 78,000 barrels a day.
Russian Deputy Prime Minister Alexander Novak said Moscow would extend its voluntary oil output reduction by 500,000 barrels per day from the February average until the end of the year.
According to Novak, the global oil market is living through a period of high volatility and unpredictability due to the continuing banking crisis in the United States and Europe, the global economic uncertainty and unpredictable and short-sighted decisions in the energy policy.
“Predictability on the global oil market is a key element of energy security,” he highlighted.