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(OPEC +): The decision to cut voluntary production is a precautionary measure to support the stability of the oil market

04-04-2023

Today, Monday, the ministerial (market monitoring) committee of the (OPEC +) alliance described the decision of some coalition countries to cut production as a precautionary measure aimed at supporting the stability of the oil market. At the end of its meeting, which was held via video technology, the committee drew attention to the voluntary adjustment of production announced by some coalition countries yesterday evening, which is scheduled to be implemented next May until the end of the year. And it added in a statement that the Kingdom of Saudi Arabia reduced its production to (500 thousand barrels per day), Iraq (211 thousand barrels per day) and the United Arab Emirates (144 thousand barrels per day), while the State of Kuwait reduced its production to (128 thousand barrels per day) and Kazakhstan (78 thousand barrels). per day), Algeria (48 thousand barrels per day), Oman (40 thousand barrels per day) and Gabon (8 thousand barrels per day). It is scheduled that these reductions will be added to the production adjustments that were identified at the 33rd ministerial meeting of (OPEC) and non-members. The committee indicated that these reductions will be added to the optional adjustment announced by the Russian Federation of (500,000 barrels per day) until the end of the current year, which will be from Average production levels, as estimated by secondary sources, for the month of February. She added that this would raise the total additional voluntary production adjustments by the above-mentioned countries to (1.66 million barrels per day). On the other hand, the committee reviewed crude oil production data for the months of January and February 2023, and noted the total conformity of the (OPEC) participating and non-member countries in the Declaration of Cooperation (DOC). The members of the coalition reaffirmed their commitment to the conformity agreement, which extends until the end of 2023, as decided at the 33rd ministerial meeting of OPEC and non-OPEC members from October 2022, urging all participating countries to achieve full compliance and adhere to the compensation mechanism.