Saudi Arabia and other OPEC+ oil producers unexpectedly cut oil production by more than 1.16 million barrels per day on Sunday. Analysts predicted an immediate price increase, and the United States deemed the action unwise.
The pledges bring OPEC+’s total reductions, which include Russia and other allies, to 3.66 million bpd, or 3.7 percent of global demand.
Russia’s deputy prime minister also stated that the country’s voluntary cut of 500,000 barrels per day would be extended until the end of 2023. The UAE, Kuwait, Iraq, Oman, and Algeria have all stated that they will reduce output voluntarily over the same time period.
The UAE announced a 144,000 bpd cut, while Kuwait announced a 128,000 bpd cut, Iraq announced a 211,000 bpd cut, and Oman announced a 40,000 bpd cut. Algeria announced a 48,000 bpd reduction in output.
The Saudi energy ministry said in a statement that the voluntary cut was a precautionary measure to support the oil market’s stability.
The event on Sunday takes place the day before a virtually convened meeting of an OPEC+ ministerial panel, which also includes Saudi Arabia and Russia, and was expected to maintain the existing 2 million bpd oil curbs through the end of 2023.