Several countries in the OPEC+ group announced on Monday additional oil production cuts of 1.6 million barrels per day (bpd).
Those involved in the new “voluntary production adjustment” starting in May and running through the end of 2023 are: Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Oman and Gabon.
As reported by the Joint Ministerial Monitoring Committee (JMCMC) in a statement, “this will bring the total additional voluntary production adjustments by the above countries to 1.66 million b/d.”
According to the statement, the measure announced Sunday “is a precautionary measure aimed at supporting oil market stability.”
Russia already voluntarily cut oil production by 500 000 bpd in March in response to an oil price cap introduced by the West. On Sunday, Moscow announced that it will synchronize with OPEC to extend its cut until the end of the year.
Oil prices rose in early trading on Monday following the OPEC+ move. Brent, the international benchmark, rose 5.5% to $84.30 a barrel, while U.S. West Texas Intermediate crude futures soared 5.6% to $79.90 a barrel.
The Saudi Energy Ministry said it was a “precautionary measure aimed at supporting oil market stability.”