Dubai, United Arab Emirates (CNN) — The Organization of Petroleum Producing Countries and its partners, or what is known as “OPEC +”, announced on Wednesday to reduce oil production by two million barrels per day starting next November, compared to the production required in August, which is the largest Reduced since the beginning of 2020, specifically since the beginning of the Corona epidemic.
Total production was adjusted by reducing it by 2 million barrels per day from the production levels required in August 2022, starting from November 2022 for the countries participating in the Organization of Petroleum Exporting Countries and the non-OPEC countries according to the attached table.
The group of major oil producers, which includes Saudi Arabia and Russia, reduced production after its first meeting in attendance since March 2020 in Vienna on Wednesday, as the reduction is equivalent to about 2% of global demand for oil.
Saudi Arabia and Russia will reduce production by 526,000 barrels per day, to reach the production share of each of them to 10,478,000 barrels per day.
Brent crude rose 1.5% to more than $93 a barrel on the news, adding to gains this week ahead of the oil ministers’ meeting. The price of US oil rose 1.7 percent to $88.
The production cut will start in November, which the group justified in a statement that was taken “in light of the uncertainty surrounding the outlook for the global economy and the oil market.”
The Organization of Petroleum Exporting Countries (OPEC) and its allies will meet again in December.
The Biden administration criticized the “OPEC +” decision in a statement on Wednesday, describing it as “short-sighted” and saying that it would harm low- and middle-income countries that are already suffering from high energy prices.
Here is the new production volume of the largest oil producing countries in the OPEC + alliance, and how much was deducted from each country’s production levels in August 2022.