Saudi Arabia and other members of the oil-producing group OPEC+ announced on April 2 that they will be cutting their output by about 1.15 million barrels per day (bpd), a move expected to cause an immediate rise in prices.
According to its state news agency, Saudi Arabia will voluntarily cut its oil production by 500,000 bpd from May to the end of 2023. The Middle Eastern kingdom’s energy official described the decision as a “precautionary measure” aimed at “supporting the stability of the oil market.”
Russia, which has already been reducing oil production by 500,000 bpd since March in response to Western countries’ price caps designed to curtail the Kremlin’s ability to finance its military campaign in Ukraine, also confirmed that it will be extending the original three-month cut by another six months….