BAKU, Azerbaijan, April 14. The newly announced supply cuts by eight OPEC+ members will lead to further tightening of the market, Trend reports with reference to the International Energy Agency (IEA).
The total supply curtailment of around 1.7 million barrels per day was described as a step to uphold the oil prices. Saudi Arabia undertook an obligation to reduce its production by additional 500 000 barrels per day from May through end-2023. Russia, for its part, extended the planned output cut of 500 000 barrels per day from March to June through the end of this year.
“Oil market balances were already set to tilt into a substantial deficit in the second half of this year, but the new cuts risk further tightening balances and pushing up oil prices at a time when inflationary pressures are already hurting vulnerable consumers – especially in emerging and developing economies,” the IEA said in its latest report.
A meeting of the OPEC+ joint ministerial monitoring committee on 3 April – widely expected to see no change in output policy – instead noted the previous day’s voluntary cuts that required no ratification by the broader group.
Among OPEC producers, Saudi Arabia will cut 500 kb/d, Iraq 211 kb/d, the UAE 144 kb/d, Kuwait 128 kb/d, Algeria 48 kb/d and Gabon 8 kb/d. Cuts by non-OPEC members were promised by Kazakhstan (78 kb/d) and Oman (40 kb/d). Russia will extend its previously announced 500 kb/d reduction.
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