Gulf nations and Russia to cut oil production, aimed at stability of the oil market

Riyadh: Despite the pressure put on by the US to produce more crude oil, Saudi Arabia along with other major players in the Gulf region and Russia has decided to reduce production.

The Saudis, Iraq, UAE, Kuwait, Algeria, and Oman from May to the end of 2023 will cut over one million barrels per day. This is the biggest reduction since the OPEC+ cartel cut down two million barrels per day in October. Russia is also going to cut 500,000 barrels per day till the end of the year, reported AFP.

Saudi Arabia said the oil-producing nations are aiming at market stability. The official Saudi Press Agency said UAE Energy Minister Suhail bin Mohammed Al Mazrouei "emphasised that this is a precautionary measure aimed at supporting the stability of the oil market." Russia called the move "a responsible and preventative action."

Last month, Jose Fernandez, the US Undersecretary of State for Economic Affairs, Energy and the Environment, said that "we would like to see more supply of crude globally, including from OPEC+. "As world economies recover, we'll see more consumption. And therefore we'd like to see supply meet demand." President Joe Biden has also repeatedly called for an increase in output from the OPEC+.

The cuts were announced in a series of statements from different countries. Saudi Arabia will cut 500,000 barrels per day, Iraq 211,000, the UAE 144,000, Kuwait 128,000, Algeria 48,000, and Oman 40,000.

OPEC+ consists of 13 members of the Organization of Petroleum Exporting Countries and 11 non-OPEC allied countries.