Several OPEC+ states, including Russia to cut oil production

Moscow: The OPEC+ Joint Ministerial Monitoring Committee (JMMC) reaffirmed on Monday its commitment to the current terms of the deal and indicated that an additional voluntary reduction in the production of a number of alliance countries together with Russia will amount to 1.66 million barrels per day by the end of 2023, according to the alliance’s communique.

On Sunday, Russian Deputy Prime Minister Alexander Novak said that the country will extend voluntary oil production cuts of 500,000 barrels per day until the end of 2023. Later in the day, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, Oman, and Gabon also announced voluntary output cuts starting May until the end of 2023.

“Accordingly, this will bring the total additional voluntary production adjustments by the above-mentioned countries to 1.66 million b/d,” the communique said.

The JMMC said that it does not recommend adjusting the current parameters of the alliance deal.

“The Members of the JMMC reaffirmed their commitment to the DoC which extends to the end of 2023 as decided at the 33rd OPEC and non-OPEC Ministerial Meeting (ONOMM) on October 5, 2022, and urged all participating countries to achieve full conformity and adhere to the compensation mechanism,” the communique said.

The production adjustments, following the announcement of several other OPEC+ states to voluntarily cut oil output, will be made at the 33rd OPEC and non-OPEC Ministerial Meeting.

“The Meeting noted the following voluntarily production adjustment announced on 2 April 2023 by Saudi Arabia (500 thousand b/d); Iraq (211 thousand b/d); United Arab Emirates (144 thousand b/d); Kuwait (128 thousand b/d); Kazakhstan (78 thousand b/d); Algeria (48 thousand b/d); Oman (40 thousand b/d); and Gabon (8 thousand b/d) starting May until the end of 2023. These will be in addition to the production adjustments decided at the 33rd OPEC and non-OPEC Ministerial Meeting,” the document read.

The next meeting of the JMMC will take place on June 4.