The OPEC+ alliance confirmed this Monday, after holding a conference call from JMMC’s internal committee, that, As of May, it will take 1.16 million barrels per day off the market based on “voluntary” cuts by several of its partners.
This cut, which has already led to a sharp rise in the price of “black gold” after the announcement on Sunday, comes on top of another 0.5 million barrels per day cut by Russia and the sharp two million barrels cut that has been announced. adopted last October by the group of 23 countries.
In a statement on Sunday, the Organization of the Petroleum Exporting Countries (OPEC) hinted at unexpected decisions by several countries about new oil supply restrictions that have sent oil prices soaring.
“The total of additional voluntary production adjustments (…) will be 1.66 million barrels per day,” the OPEC note writes.
He adds that the new cut is shared between Saudi Arabia and Russia, which will reduce supply by 500,000 barrels a day each, Iraq (211,000 barrels a day), United Arab Emirates (144,000 barrels a day), Kuwait (128,000 barrels per day). ), Kazakhstan (78,000 barrels per day), Algeria (48,000 barrels per day), Oman (40,000 barrels per day) and Gabon (8,000 barrels per day).
All these “voluntary” reductions, i.e. without binding and consensual agreement within the alliance, will take effect from May to the end of 2023.
The internal committee JMMC (Joint Ministerial Monitoring Committee), an internal and advisory body of OPEC+, “noted that this is a precautionary measure to support the stability of the oil market,” the statement said.
White House: “We believe these cuts are inadvisable at this time given the uncertainty in the market and we have made that clear”
The decision by the group, which controls about 40% of the world’s oil supply, came as a surprise in markets where analysts had said they did not expect OPEC+ to change its supply levels at this point.
Among major consumers, the news fueled fears of renewed inflationary pressures.
“We believe these cuts are not advisable at this time given the uncertainty in the market and we have made that clear,” a White House Security Council spokesman told Efe on Sunday.
Oil prices rose this morning, with a barrel of Brent oil, the main international benchmark, touching $84 a barrel after rising 5.2 percent at 10:44 GMT.
The Kremlin today defended the “important measure”, which aims, among other things, to guarantee investment in the sector.
The cuts serve to “keep world prices for oil and petroleum products at the right level,” Dmitry Peskov, spokesman for the Russian presidency, said in Moscow.
Thierry Breton, European Commissioner for the Internal Market, warned that the OPEC+ decision makes it clear that the oil market is “an artificial market” and defended giving up fossil fuels as soon as possible.
“After this decision, it is urgent, really urgent, to stop being dependent on fossil fuels, because those who control them, or at least control a large part of them, play with them,” Breton said in an interview with France Info.
News updated at 13:29
Source: DN
