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Oil prices recorded a significant increase on Monday, after the decision of the major producers to reduce coordinated daily production by a total of more than one million barrels per day, starting from next May until the end of this year. Thus, Saudi Arabia, which coordinated the move, will reduce 500 thousand barrels per day, Iraq 211 thousand barrels, the UAE 144 thousand barrels, Kuwait 128 thousand barrels, Algeria 48 thousand barrels, and the Sultanate of Oman 48 thousand barrels, according to what each country announced.
On Sunday, Saudi Arabia led a coordinated reduction in daily production at a number of major countries oil countries In a “precautionary measure” to achieve “stability and balance” in the crude markets. The decision came on the eve of the meeting of the Ministerial Oversight Committee of the Organization of Petroleum Exporting Countries and its partners (OPEC Plus alliance) on Monday via visual communication techniques.
And Saudi Arabia, the Emirates, Kuwait, the Sultanate of Oman and Algeria decided in a coordinated manner to reduce their daily production by a total of more than one million barrels per day, starting from next May until the end of this year, in the largest production cut since the decision of the Organization of Petroleum Exporting Countries and its partners (OPEC Plus alliance) in October. October 2022, by reducing two million barrels per day.
Likewise, Russia declared its membership in OPEC Plus Alliance It will extend its crude oil production cut by 500,000 barrels per day until the end of 2023.
for more- Oil.. “OPEC Plus” decisions are political or economic?
Saudi Arabia will reduce 500 thousand barrels per day, Iraq 211 thousand barrels, the UAE 144 thousand barrels, Kuwait 128 thousand barrels, Algeria 48 thousand barrels, and the Sultanate of Oman 48 thousand barrels, according to what each country announced.
Oil prices jumped nearly 6% Monday in Asian trading after the sudden announcement of large production cuts by these countries.
The sudden announcement of the cut in oil production came though Repeated US calls to increase productionEspecially with the increase in consumption and the full reopening of economic activities in China, the largest oil consumer in the world, after the closures related to the Covid pandemic.
Ibrahim Al-Ghitani, an energy expert residing in Abu Dhabi, indicated that the voluntary cuts “come after Brent crude prices reached their lowest levels in two years last March, due to the crisis of some US banks,” while the analyst specializing in Gulf affairs said in the “Middle East” publication. Economic Survey, Yassar al-Maliki, said, “The decision was not completely unexpected after the recent decline in (oil) prices, but it also had a surprising effect regarding the size of” the announced cut.
It is worth noting that the OPEC Plus cartel consists of 13 member states of the Organization of the Petroleum Exporting Countries (OPEC) and 11 countries from outside it.
France 24/AFP
