OPEC+ has unexpectedly announced a cut in oil production from May until the end of 2023 by 1 million barrels a day. This was reported by the Bloomberg agency. A cut of half a million barrels will be made by Saudi Arabia. The rest from acceding countries such as Kuwait, the United Arab Emirates and Algeria, while Russia has announced that the cut it had announced from March to June will be extended throughout 2023.
“The Minister of Energy – writes Bloomberg – underlined that it is a matter of a precautionary measure to safeguard the stability of the oil market”. The cut comes in addition to the one agreed at the meetings of OPEC and non-OPEC countries last October.
Algeria also announced today that it will voluntarily reduce its oil production by 48,000 barrels per day from next May until the end of 2023, according to a statement from the Ministry of Energy and Mines. The dicastery indicates that the voluntary reduction will take place in coordination with some member states of the OPEC+ alliance. “This voluntary reduction is a precautionary measure in addition to the production reduction agreed at the 33rd OPEC+ Ministerial Meeting on 5 October 2022,” he added. Algeria, which is a member of the Organization of the Petroleum Exporting Countries of OPEC, produces more than one million barrels of crude oil a day.
