OPEC+ makes over 1 million-barrel oil production cut - Here's a detailed list
2 min read . Updated: 02 Apr 2023, 11:18 PM IST
PremiumThe initial impact of the cuts, starting next month, will add up to about 1.1 million barrels a day. From July, due to the extension of Russia’s existing supply reduction, there will be about 1.6 million barrels a day less crude on the market than previously expected.
OPEC+ announced a surprise oil production cut on Sunday, ignoring previous assurances that it would hold supply steady to maintain a stable market. The reduction is slated to exceed 1 million barrels a day, and according to analysts, may mean a rise in global oil prices by $10 per barrel.
Saudi Arabia leads the list with a reduction of 500,000 barrels per day. The list also includes fellow members such as Kuwait, the United Arabia Emirates and Algeria. Meanwhile, war-hit Russia has said that it would continue the production cut implemented from March to June till the end of this year.
Not all OPEC+ members were joining the move as some are already pumping well below agreed levels due to a lack of production capacity.
Here is a detailed breakdown:
Saudi Arabia will cut output by 500,000 bpd from May until the end of 2023
Iraq will reduce its production by 211,000 bpd from May until the end of 2023
The UAE said it would cut production by 144,000 bpd from May until the end of 2023
Kuwait announced a cut of 128,000 bpd from May until the end of 2023
Oman announced a cut of 40,000 bpd from May until the end of 2023
Algeria said it would cut its output by 48,000 bpd from May until the end of 2023
Kazakhstan will cut output by 78,000 bpd from May until the end of 2023
Russia will extend a voluntary cut of 500,000 bpd until the end of 2023
Gabon would make a voluntary cut of 8,000 bpd
The development comes a day before a virtual meeting of an OPEC+ ministerial panel, which includes Saudi Arabia and Russia, and which had been expected to stick to 2 million bpd of cuts already in place until the end of 2023.
This will be the biggest reduction since the OPEC cartel slashed two million barrels per day in October. While the initial impact will add up to 1.1 million barrels per day the number is likely to go up to about 1.6 million barrels a day from July.
(With inputs from agencies)