Oil powers to slash production by more than 1m bpd
Saudi Arabia led a coordinated production cut by major oil powers on Sunday despite US pressure to pump more crude, saying they were aiming at market stability. Cuts by the Saudis, Iraq, UAE, Kuwait, Algeria and Oman from May to the end of the year will total more than one million barrels per day – the biggest reduction since the OPEC+ cartel slashed two million barrels per day in October. Russia, a member of OPEC+, said it was also extending its cuts of 500,000 bpd to the end of this year, calling it "a responsible and preventive action". A Saudi energy ministry official "emphasised that this is a precautionary measure aimed at supporting the stability of the oil market", the official Saudi Press Agency said. The cuts were made public in a series of statements from the different countries. The output reductions are on top of a controversial decision in October by OPEC and its allies including Russia – collectively known as OPEC+ – to slash production by two million barrels per day. That reduction, the biggest since the height of the Covid pandemic in 2020, came despite concerns it would fuel further inflation and push central banks to hike interest rates even more. "This voluntary initiative is a precautionary measure taken to ensure market balance," said UAE Energy Minister Suhail bin Mohammed Al Mazrouei, according to the official WAM news agency on Sunday. Saudi Arabia will cut 500,000 barrels per day, Iraq 211,000, the UAE 144,000, Kuwait 128,000, Algeria 48,000 and Oman 40,000, each country announced. The statements came a day before OPEC+ is due to hold a Joint Ministerial Monitoring Committee meeting on Monday via videoconferencing, according to the UAE.(AFP)