Several member countries of the Organization of the Petroleum Exporting Countries (OPEC+) began to cut their oil production since May, until the end of 2023. The voluntary reduction will be added to the 2 million barrels per day reduction plan ( bpd) of the alliance, which has been in place since November last year.
9 OPEC+ countries have announced additional restrictive measures for the production of “black gold”. The largest hydrocarbon producer – Saudi Arabia – will voluntarily cut oil production by 500,000 bpd, Iraq – by 211,000 bpd, United Arab Emirates – by 144,000 bpd, Kuwait – by 128,000 bpd , Kazakhstan – 78,000 bpd, Algeria – 48,000 bpd, Oman — 40,000 bpd, Gabon — 8,000 bpd. The Russian Federation has extended until the end of this year the decision to cut production by five hundred thousand barrels per day from the February average, which was in effect until the end of June. Thus, the total volume of the drop in production will be 1.66 million bpd.
The statement, which was posted on the organization’s official website, said the preventive measures to cut production are aimed at maintaining stability in the oil market.
In early April, a columnist for the British newspaper The Telegraph noted that the decision of a number of OPEC+ member states to cut oil production would deal a triple blow to the West. In his opinion, high prices for “black gold” will stimulate inflation and weaken anti-Russian sanctions due to the growth of income in the Russian Federation.
Earlier, RANEPA Deputy Rector, Honored Economist of the Russian Federation Andrei Margolin, in an interview with Zvezda, suggested that the ruble may strengthen against the backdrop of the OPEC+ decision. According to him, the tax period is now over, when companies were paying taxes, especially large exporters, they were doing it in rubles, converting their currency into Russian.
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