‎OPEC+ surprise output cut prevents speculations: Experts

‎OPEC+ surprise output cut prevents speculations: Experts

The OPEC+ Joint Ministerial Monitoring Committee (JMMC) said the decision taken by Saudi Arabia and other members to voluntarily reduce oil production on April 2 is a preemptive measure that aims to shore up market stability.

Following the voluntary cut, total additional voluntary production adjustments will reach 1.66 million barrels per day starting May to until the end of 2023.

Saudi Arabia approved a voluntary output cut of 500,000 bpd; Iraq (211,000 bpd); UAE (144,000 bpd); Kuwait (128,000 bpd); Kazakhstan (78,000 bpd); Algeria (48,000 bpd); Oman (40,000 bpd); and Gabon (8,000 bpd) starting May until the end of 2023.

In a phone call with Argaam, economist and oil expert Mohammed Al-Sabban, described the OPEC+ decision as a preemptive and proactive measure, as markets witness a wave of higher interest prices and inflation.