UAE, Saudi, Oman and Kuwait to cut oil production from May to end of 2023

Gulf Today Report

Suhail Bin Muhammad Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, said that the United Arab Emirates will voluntarily reduce its oil production by 144,000 barrels per day, starting from next May until the end of the current year 2023, in coordination with some of the countries participating in the OPEC Plus agreement.

Al Mazrouei added, in a statement, that this voluntary cut is a precautionary measure taken to achieve balance in the oil market, in addition to that it comes within the framework of the production cut agreed upon at the thirty-third ministerial meeting of OPEC Plus, which was held on October 5, 2022.

It is worth noting that OPEC Plus is scheduled to hold a meeting of the Ministerial Monitoring Committee tomorrow, Monday, via visual communication techniques.

Saudi Arabia also announced a voluntary reduction in oil production by half a million barrels per day, starting from May until the end of 2023.

Oman also reduced oil production voluntarily by 40,000 bpd starting from may to end of 2023.

Kuwait's energy ministry said they will voluntarily cut oil production by 128,000 barrels per day, starting from May until the end of 2023, according to state media.

OPEC producers' unexpected 1.15 million barrel per day production cut could lift global oil prices by $10 per barrel, the head of investment firm Pickering Energy Partners said on Sunday.

The output reduction "will firm prices meaningfully," said Dan Pickering, co-founder of the Houston-based firm.

"We will probably get a $10 (per barrel) move in crude," Pickering said in an interview.

Saudi Arabia and other producers disclosed voluntary cuts ahead of Monday's OPEC ministerial monitoring meeting that was expected to endorse existing production levels.

The OPEC group said the move was aimed at supporting market stability.