OPEC indicated that there will be a reduction in the pumping of crude oil that will fall on eight countries, including Saudi Arabia and Russia. It is estimated that the measure will be extended throughout 2023
The Organization of the Petroleum Exporting Countries (OPEC) confirmed this Monday, April 3, that, “voluntarily”, the partners of this instance are going to withdraw 1.66 million barrels per day (mbd) from the market starting in May; following a discussion by the Joint Ministerial Oversight Committee (JMMC).
These reductions, which total 1.16 mbd, were added to a reduction of 0.5 mbd previously announced by Russia, which on Sunday, April 2, also announced the extension of the measure until the end of the year, and the strong cut of 2 mbd, which was formally adopted by the group of 23 countries in October 2022.
The measure adopted by OPEC + specifies that the new cut is shared between Saudi Arabia and Russia, which will reduce their pumping by 500,000 barrels per day each; Iraq (211,000 bd), United Arab Emirates (144,000 bd), Kuwait (128,000 bd), Kazakhstan (78,000 bd), Algeria (48,000 bd), Oman (40,000 bd), and Gabon (8,000 bd).
All these “voluntary” reductions, that is, without a binding and consensual agreement within the alliance, will be in effect from May until the end of 2023.
*Read also: Venezuelan oil barrel increased 49.5% in 2022 to close at $76.96, according to OPEC
The decision of this group, which controls close to 40% of the world crude supply, surprised in markets where analysts had said that they did not expect OPEC+ to modify its supply levels at this time.
The information about the cut came after OPEC’s monthly report on oil activity in February Venezuelathere will be a drop from 732 thousand barrels per day (b/d) to 704 thousand b/d.
Venezuela, which according to official projections would close last year with a production of more than 2 million b/d, pumped an average of 716 thousand b/d in 2022, which represented an increase of 12.5% compared to 2021. , when it averaged 636 thousand b/d.
With information from EFE
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