Crude oil storage tanks at the Juaymah Tank Farm at Saudi Aramco’s Ras Tanura Oil Refinery and Oil Terminal in 2018. Crude prices have fluctuated in recent months, reaching over $120 in early June amid fears rising from a global recession, then falling to around $90 a barrel after OPEC+ cut production.
Simon Dawson | Bloomberg | Getty Images
Saudi Arabia and other OPEC+ oil producers announced voluntary production cuts on Sunday, with Riyadh saying it would cut production by 500,000 barrels per day (bpd) from May to the end of 2023, reported state media.
Russia’s deputy prime minister also said Moscow would extend a voluntary reduction of 500,000 bpd until the end of 2023. The United Arab Emirates, Kuwait, Iraq, Oman and Algeria said they would reduce voluntarily their production during the same period.
The United Arab Emirates said it would cut production by 144,000 bpd, Kuwait announced a cut of 128,000 bpd while Iraq said it would cut production by 211,000 bpd and Oman announced a cut of 40,000 bpd. Algeria said it would cut production by 48,000 bpd.
Saudi Arabia’s energy ministry said in a statement that the kingdom’s voluntary reduction was a precautionary measure to support stability in the oil market.