Saudi Arabia, Kuwait announce oil production cut, surprise market

Saudi Arabia, Kuwait announce oil production cut, surprise market

The kingdom's energy ministry said in a statement that the kingdom's voluntary cut was a precautionary measure aimed at supporting the stability of the oil market

By Reuters Published: Sun 2 Apr 2023, 8:39 PM Last updated: Mon 3 Apr 2023, 8:47 AM

Saudi Arabia and other OPEC+ oil producers on Sunday announced voluntary cuts to their production amounting to around 1.15 million barrels per day, in a surprise move they said was aimed at supporting market stability.

The group had been largely expected to stick to its already agreed 2 million bpd cuts when its ministerial panel, which includes Saudi Arabia and Russia, meets virtually on Monday.

Last October, OPEC+, which comprises the Organization of Petroleum Exporting Countries (OPEC) and allies led by Russia, agreed on output cuts of 2 million bpd from November until the end of the year, angering Washington as tighter supply boosts oil prices.

The US has argued that the world needs lower prices to support economic growth and prevent Russian President Vladimir Putin from earning more revenue to fund the Ukraine war.

Sunday's unexpected voluntary cuts, which start from May, come in addition to the ones already agreed to in October. Riyadh said it would cut output by 500,000 bpd