This measure will last until the end of the year

Several countries participating in the OPEC+ agreement have started voluntary reduction of oil production since May, which will last until the end of 2023. The total volume of production reduction will be 1.66 million barrels per day (b/d).

Some OPEC+ countries, including the largest oil producer, Saudi Arabia, unexpectedly announced a voluntary reduction in oil production from May to the end of 2023 a day before the meeting of the alliance’s ministerial monitoring, held on April 3. In a statement published on the OPEC website after the monitoring meeting, it was said that preventive measures to reduce production are aimed at maintaining the stability of the oil market.

In total, nine OPEC+ countries announced additional restrictive measures on production. Saudi Arabia will voluntarily reduce production by 500 000 b/d, Iraq – by 211 000 b/ d, the UAE – by 144 000 b/d, Kuwait – by 128 000 b/d, Kazakhstan – by 78 000 b/d, Algeria – by 48 000 b/d, Oman – by 40 000 b/d, Gabon – by 8 000 b/d. Russia has extended until the end of the year the decision that was in effect until the end of June to reduce production by 500 000 b/d from the average February values.

The voluntary volume of production reduction will be an addition to the OPEC+ plan for a reduction of 2 million b/d effective from November 2022.