RIYADH-- Saudi Arabia on Sunday led coordinated oil major cuts despite pressure from the United States to pump more oil and said it was seeking market stability.
Saudi, Iraq, UAE, Kuwait, Algeria and Oman's year-end cuts in May will total more than 1 million bpd, the largest reduction since the OPEC+ cartel cut 2 million bpd a day in October has.
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OPEC+ members, Russia said it would extend its cuts of 500,000 barrels a day through the end of this year, calling it "a responsible and preventative measure."
An official with the Saudi Ministry of Energy "underlined that this is a precautionary measure to support the stability of the oil market," reported the official Saudi News Agency.
The cuts were published in a number of statements from different countries.The production cuts come on top of a controversial decision by OPEC and its allies, including Russia — known collectively as OPEC+ in October — to cut production by two million barrels a day. The cut, the largest since the Covid pandemic peaked in 2020, came despite fears it could further fuel inflation and force central banks to raise rates further. "This voluntary initiative is a precautionary measure to ensure market balance," UAE Energy Minister Suhail bin Mohammed Al Mazrouei said on Sunday, according to the official WAM news agency.
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Saudi Arabia to extract 500,000 barrels per day, Iraq 211,000, United Arab Emirates 144,000, Kuwait 128,000, Algeria 48,000 and Oman 40,000 for each country announced.
US wants more results
The statements came a day ahead of the OPEC+ Joint Ministerial Oversight Committee meeting scheduled for Monday via videoconference, the UAE said.The
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cuts were announced despite calls for the United States to ramp up production as consumption rises and China, the world's biggest oil consumer, reopens after the Covid lockdown.
“As the world economy recovers, we will see an increase in consumption. That's why we want supply to match demand," said Jose Fernandez, US Undersecretary for Business, Energy and Environment, on the sidelines of the CERAWeek energy conference in Houston, Texas last month.
"We'd like to see more supply" around the world, including OPEC+, Fernandez said.
OPEC+ consists of 13 Organization of Petroleum Exporting Countries members and 11 non-OPEC allies.
US President Joe Biden has consistently called for an increase in OPEC+ production after the Russian invasion of Ukraine led to a sharp rise in prices. OPEC also raised its 2023 global oil demand forecast in February, saying it expects demand to rise by 2.3 million barrels per day to an average of 101.87 million barrels per day this week.