OPEC+ countries voluntary cut oil production from May and until yearend

A number of countries participating in the OPEC+ agreement have voluntarily reduced their oil production beginning from May 1 and until the end of the year and the total oil output downfall is now estimated at 1.66 million barrels per day.

The OPEC+ countries at the issue announced on April 2 voluntary reduction in oil output until 2024.

Saudi Arabia has decided to reduce oil production by 500,000 barrels per day (bpd) from May until the end of 2023, while the UAE will reduce production by 144,000 bpd, Iraq - by 211,000 bpd, Kuwait - by 128,000 bpd, Oman - by 40,000 bpd, Algeria - by 48,000 bpd, Kazakhstan - by 78,000 bpd and Gabon - by 8,000 bpd.

Russia’s Deputy Prime Minister Alexander Novak announced earlier in the year that Russia would extend a voluntary reduction in oil output of 500,000 barrels per day from the average February level until the end of 2023.

On April 2, a number of OPEC+ nations announced a voluntary output reduction from May to the end of 2023. Decisions on the issue were confirmed following the meeting of the OPEC+ ministerial monitoring committee held on April 3.

The total volume of voluntary oil output reduction was estimated at that time at 1.66 million barrels per day and the decision was made in addition to agreements enforced in November 2022 on reduction in output by 2 million barrels per day within the framework of the OPEC+ deal.