Kuwait and major oil producers announce surprise output cuts

Kuwait and major oil producers announce surprise output cuts

KUWAIT: Gulf oil producers Kuwait, Saudi Arabia and the United Arab Emirates led a coordinated cut in production by Middle East countries on Sunday, calling it a “precautionary measure” aimed at market stability. Surprise cuts by Kuwait, Saudi Arabia and the UAE totaling 772,000 barrels per day (bpd) will take effect from May and last for the rest of the year, they said in statements released by official media. Iraq followed suit while Algeria also announced a “voluntary” cut of 48,000 bpd over the same timeframe. Oman announced a cut of 40,000 bpd, while Kazakhstan will also cut output by 78,000 bpd.

Kuwait will implement a voluntary cut of 128,000 barrels per day from May till the end of 2023 in coordination with some OPEC and non-OPEC participating countries in the Declaration of Cooperation, Deputy Prime Minister and Oil Minister Bader Al-Mulla said in a press release Sunday. This voluntary cut is a precautionary measure in addition to the reduction in production agreed at the 33rd OPEC and non-OPEC Ministerial Meeting on Oct 5, 2022, the minister added.

Russia’s Deputy Prime Minister Alexander Novak also said on Sunday that Moscow would extend a voluntary cut of 500,000 bpd until the end of