Gulf oil giants Saudi Arabia, the United Arab Emirates and Kuwait announced a coordinated cut in oil production. (Representational image/Reuters)
The cuts, a combined 772,000 barrels per day (bpd), will take effect from May and last for the rest of the year, they said in statements released to official media.
Gulf oil giants Saudi Arabia and the United Arab Emirates on Sunday led a coordinated cut in production by Middle East countries, calling it a “precautionary measure” aimed at market stability.
In statements released by official media, they said cuts by Saudi Arabia, the United Arab Emirates and Kuwait totaling 772,000 barrels per day (bpd) would take effect from May and last for the rest of the year.
Iraq followed suit while Algeria also announced a “voluntary” cut of 48,000 bpd in the same timeframe.
The official Saudi Press Agency said a Saudi energy ministry official “stressed that this is a precautionary measure aimed at supporting the stability of the oil market”.
The cuts come on top of oil cartel OPEC’s controversial decision in October to cut production by two million barrels per day, the report said.
The reduction, the largest since the height of the COVID pandemic in 2020, came despite concerns that it could push inflation further and prompt central banks to hike interest rates even further.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)