SAUDI ARABIA AND OPEC+ PRODUCERS REPORT SURPRISE CUTS IN OIL OUTPUT

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 output cuts of 2 million bpd from November until the end of the year, angering Washington as tighter supply boosts oil prices.

The United States 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 in October.

Riyadh said it would cut output by 500,000 bpd while Iraq will reduce its production by 211,000 bpd, according to official statements.

The UAE said it would cut production by 144,000 bpd, Kuwait announced a cut of 128,000 bpd while Oman announced a cut of 40,000 bpd and Algeria said it would cut its output by 48,000 bpd. Kazakhstan will also cut output by 78,000 bpd.

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