The Kingdom of Saudi Arabia – which is considered one of the world’s major oil exporters – and other oil producers within OPEC Plus, announced yesterday, Sunday; For further cuts in oil production by 1.16 million barrels per day.
Accordingly, the Saudi Ministry of Energy stated, in a statement, that the Kingdom’s voluntary reduction is a precautionary measure aimed at supporting the stability of the oil market.
At the same time, official media reported that Riyadh, the capital of the Kingdom of Saudi Arabia and its main financial center, will reduce oil production by 500,000 barrels per day from next May until the end of 2023.
Also, Russian Deputy Prime Minister Alexander Novak stated that Moscow will extend a voluntary cut in oil production by about 500,000 barrels per day until the end of 2023, in addition to the announcement by the United Arab Emirates, Kuwait, Iraq, the Sultanate of Oman and Algeria that they will voluntarily cut oil production in the same period of time.
Meanwhile, the UAE announced a reduction in oil production by 144,000 barrels per day, and Kuwait announced a reduction of about 128,000 barrels per day of crude oil, in addition to reducing Iraq by about 211,000 barrels per day, in addition to the announcements of Algeria and the Sultanate of Oman to reduce production. Oil by 48 and 40 thousand barrels per day.
It should also be noted that such a measure is expected to cause an immediate and strong rise in oil prices.
In terms of trading today, the spot contracts for Brent crude recorded a strong increase by 5.38% and settled near the level of $84.09 a barrel. At the same time, the spot contracts for West Texas crude achieved an increase of 5.18% and reached $79.54 a barrel.