OPEC+ unexpectedly cuts output by 1 million barrels

That means about 1 million barrels a day less crude will flow into the market starting in May than previously expected.

In a separate statement, the OPEC+ countries said the production cuts were to ensure stability in energy markets.

Suhail bin Mohammed Al Mazrouei, UAE Minister of Energy and Infrastructure, announced that the UAE will coordinate with some countries in the OPEC+ agreement to voluntarily cut its oil production by 144,000 barrels per day, effective from May until the end of 2023.

“This voluntary move is a precautionary measure to ensure market balance, in line with the production cuts agreed at the 33rd OPEC and Non-OPEC Ministerial Meeting (ONOMM) on October 5, 2022,” the minister said in a statement said in. statement.

OPEC+ plans to hold a meeting of the Joint Ministerial Monitoring Committee (JMMC) via video conference on Monday.

Meanwhile, Saudi Arabia said it would implement voluntary production cuts of 500,000 barrels per day from May until the end of 2023. Kuwait’s energy ministry said the country would cut output by 128,000 barrels a day by the end of the year, while Iraq would cut its oil output by 211,000 barrels a day. Oman said it would cut oil output by 40,000 barrels per day.

According to Bloomberg’s opinion