Russia and eight “OPEC” + countries announced simultaneously and unexpectedly to reduce oil production by about 1.65 million barrels per day, starting from next month, to achieve stability in the global energy market.
Voluntary reductions will begin next May and will continue until the end of 2023. The move led to an immediate rise in the price of black gold by about 5%.
The discounts were distributed as follows:
1. Russia – 500 thousand barrels per day.
2. Saudi Arabia – 500 thousand barrels per day.
3. Iraq – 211 thousand barrels per day.
4. UAE – 144 thousand barrels per day.
5. Kuwait – 128 thousand barrels per day.
6. Algeria – 48 thousand barrels per day.
7. Kazakhstan – 78 thousand barrels per day.
8. The Sultanate of Oman – 40 thousand barrels per day.
9. Gabon – 8 thousand barrels per day.
The cuts came in the wake of a sharp decline in oil prices last month after the collapse of the American “Silicon Valley” bank and the compulsory acquisition of “Credit Suisse” by “UBS”, which raised fears of a “bank collapse” infection spreading in global financial markets and a decline Great demand for crude oil.
“(OPEC +) made a preemptive cut to overcome any potential weakness in demand from the emerging banking crisis,” said Amrita Sen, director of research at Energy Aspects.
For its part, Goldman Sachs raised its forecast for oil prices after the sudden announcement by “OPEC +” about adopting further production cuts.
The bank’s analysts said in a note yesterday, Sunday, that expectations for the price of “Brent” crude for December 2023 increased by $ 5 to $ 95 a barrel, while expectations for December of next year were raised by $ 3 to $ 100 a barrel.
This article was originally published by RT.