Agadir 24 | Agadir24
Oil prices recorded a significant increase after a coordinated decision taken by 6 Arab countries, namely: Saudi Arabia, Iraq, the Emirates, Kuwait, Algeria and the Sultanate of Oman.
This, and these six countries took a decision to reduce daily production by a total of more than one million barrels per day, starting from next May until the end of this year, which led to a rise in oil prices since yesterday, Monday.
In this context, oil prices jumped nearly 6%, yesterday, Monday, in Asian trading, after the sudden announcement of large production cuts by these countries.
The day before yesterday, Sunday, Saudi Arabia led a coordinated reduction in daily production in a number of major oil countries, in a “precautionary measure” to achieve “stability and balance” in the crude markets, on the eve of the meeting of the Ministerial Monitoring Committee of the Organization of Petroleum Exporting Countries and its partners (OPEC Plus alliance).
And media sources stated that Saudi Arabia, which coordinated the move, decided to reduce 500 thousand barrels per day, Iraq 211 thousand barrels, the UAE 144 thousand barrels, Kuwait 128 thousand barrels, Algeria 48 thousand barrels, and the Sultanate of Oman 48 thousand barrels.
This decision is the largest production cut since the decision of the Organization of the Petroleum Exporting Countries and its partners (OPEC Plus alliance) in October 2022 to cut two million barrels per day.
On a related issue, Russia, which is a member of the “OPEC Plus” alliance, announced that it will extend the reduction of its crude oil production by 500,000 barrels per day until the end of 2023.
In this regard, the sudden announcement of the reduction in oil production came, despite repeated calls by the United States to increase production, especially with the increase in consumption and the full reopening of economic activities in China, the largest oil consumer in the world, after the closures related to the Covid pandemic.
It is noteworthy that the OPEC Plus cartel consists of 13 member states of the Organization of the Petroleum Exporting Countries (OPEC) and 11 countries from outside it.