Saudi Arabia, Six Other OPEC+ Members Announce Surprise New Oil Production Cuts

Saudi Arabia and half a dozen other members of OPEC+ announced on Sunday that they plan to cut up to a combined 1.15 million barrels of oil a day from May until the end of 2023, calling the decision a “precautionary measure” aimed at ensuring market stability.

The unexpected move comes six months after a decision to cut production by two million barrels a day, also through the end of 2023, sparked a serious diplomatic spat between the Biden administration and the kingdom.

The seven producers each issued separate but evidently orchestrated announcements about their “voluntary” reduction plans. Iraq by 211,000, the United Arab Emirates by 144,000, Kuwait by 128,000, Algeria by 48,000 and Oman by 40,000 barrels a day.

Russia, meanwhile, announced that it would extend its already-implemented reduction of 500,000 barrels a day – which it began at the beginning of March – through the end of the year.

“As responsible and preemptive actions, Russia will extend its voluntary oil production reduction by 500,000 barrels a day until the end of 2023 from the average production level in February established in conformity with independent sources," Deputy Prime Minister Alexander Novak said in a statement.