By Caribbean News Global
UAE / BAGHDAD – On Sunday, OPEC+ announced voluntary oil output cuts from May to year-end.
Saudi Arabia, minister of energy and infrastructure, Suhail bin Mohammed Al Mazrouei announced that the UAE will voluntarily cut its oil output by 144,000 bpd, effective May through the end of 2023, in coordination with some countries that are parties to the OPEC+ agreement.
“This voluntary initiative is a precautionary measure taken to ensure market balance and comes in alignment with the production cut agreed upon during the 33rd OPEC and non-OPEC Ministerial Meeting (ONOMM), held on 5 October 2022,” the minister said in a statement.
Last October, the US disagreed and argued that tighter global supply would boost oil prices. The US also said then about Saudi Arabia’s oil production cuts, that there would be “consequences”. The announcement Sunday by oil producers is seen as unwise.
The Republic of Iraq announced it will cut oil production voluntarily by 211,000 barrels per day from May until the end of 2023.
Meanwhile, Kuwait announced a cut of 128,000 bpd – Oman announced a cut of 40,000 bpd and Algeria said it would cut its output by 48,000 bpd. Kazakhstan will also cut output by 78,000 bpd, Reuters reported.
While the price of oil fell $70.00 a barrel, the lowest in 15 months, the latest output reductions could lift oil prices by $10.00 amid market uncertainty.
The early market price for oil Monday is reporting a 6 percent increase.
OPEC+ (the 13 members of the Organisation of the Petroleum Exporting Countries and 11 non-OPEC allied countries) are scheduled to hold the meeting of the Joint Ministerial Monitoring Committee (JMMC), on Monday via videoconferencing.