OPEC members announce cut in oil production exceeding one million barrels per day from next month

Tags: International News

On April 2, Saudi Arabia and other OPEC Plus members announced that they would further reduce oil production amounting to around 1.16 million barrels per day.

An overview of the news

• The move is aimed at bringing stability to the market.

• The announcement was made at a virtual meeting of the OPEC Plus ministerial panel.

• The unexpected cuts announced by Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Algeria and Oman will begin in May and last until the end of the year.

• This would be the biggest reduction since oil producers cut two million barrels per day in October 2022.

• The move follows a drop in oil prices last month (down to $70 a barrel) and concerns that the global banking crisis could hit demand.

Production cuts announced by OPEC Plus members, as per their official statements-

• Russia - 500,000 bpd

• Saudi Arabia -500,000 bpd

• UAE - 144,000 bpd

• Kuwait - 128,000 bpd

• Kazakhstan - 78,000 bpd

• Algeria - 48,000 bpd

• Oman - 40,000 bpd

About OPEC

• The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental organisation that was established in 1960 at the Baghdad Conference by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

• The purpose of this organisation is to coordinate and integrate the petroleum policies of its member countries and to ensure the stabilisation of oil markets to ensure efficient, economic and regular supply of petroleum to the consumer.

• Headquarters - Vienna (Austria).

• Member Countries (15)- Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, IR Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

OPEC plus

• It is a coalition of OPEC members and the world's 10 major non-OPEC oil exporting countries.

• Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.