Saudi Arabia and Russia, two countries considered central players in OPEC, announced this Sunday that they will extend cuts in oil production until the middle of the year to try to raise its price. Specifically, Riyadh will maintain a reduction of one million barrels per day during the second half of the year, as announced by the Ministry of Energy, and Moscow has announced that it will produce about 470,000 fewer barrels per day (Mdb) during the same period of time, Alexander announced. Novak, deputy prime minister, through a statement.
The coordinated strategy between the governments of Saudi Arabia and Moscow has been followed by other countries, which have made their announcements individually. The United Arab Emirates has said it would extend its 163,000 Mbd cut until June, while Kuwait said it would cut production by 135,000 Mbd. Algeria will reduce 51,000 Mdb and Oman 42,000 Mdb. Iraqi Oil Minister Hayan Abdel-Ghani has confirmed to reporters that Baghdad would also extend its cut.
In the case of Russia, which extracts 9.95 million barrels per day, the member of the Executive added that production levels will be restored in the future depending on the situation in the international hydrocarbon market.
The market had already anticipated this decision on Friday, so oil prices rose slightly. The barrel of Brent finished with a rise of 2%, to $83.55, while that of Texas slightly exceeded $80 for the first time since November. The reference barrel in Europe was at $100 last September and at $120 after the invasion of Ukraine. Obviously, the cartel considers the current prices still too low.
Last November, OPEC agreed to voluntary cuts totaling around 2.2 million barrels per day for the first quarter, led by Saudi Arabia which today renewed its own voluntary cut.
