Kuwait and Other Major Oil Producers Declare Surprise Output Cuts
- Publish date: Monday، 03 April 2023
The cuts are aimed at market stability.
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Kuwait, UAE, and Saudi Arabia announced a cut in production of oil output by countries in the Middle East, which is aimed at market stability.
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The cuts by Kuwait, Saudi Arabia, and the UAE will amount to a total of 772,000 barrels per day (bpd) and will be implemented from May and last for the rest of the year.
Algeria also declared a voluntary cut of 48,000 bpd over the same time period, while Oman announced a cut of 40,000 bpd and Kazakhstan also plans to reduce oil output by 78,000 bpd. Iraq also plans to reduce its oil output.
Kuwait will implement a voluntary cut of 128,000 bpd from May until the end of 2023 in collaboration with some Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC participating countries in the Declaration of Cooperation. This information was shared by Deputy Prime Minister and Oil Minister Bader Al-Mulla in a press release on Sunday.
The minister emphasized that the voluntary cut will be a precautionary measure added to the reduction in production, which was agreed to at the 33rd OPEC and non-OPEC Ministerial Meeting on October 5th, 2022.
Russia’s Deputy Prime Minister Alexander Novak also announced on Sunday that Moscow will extend a voluntary cut of 500,000 bpd until the end of 2023.
The Saudi Press Agency reported that a Saudi energy ministry official assured that the cuts in oil output are "a precautionary measure aimed at supporting the stability of the oil market.”