OPEC has surprisingly announced a cut in oil production that will exceed 1 million barrels per day, reducing supplies from May despite the recovery in prices from 15-month lows. The measure will be extended until the end of the year and represents an additional reduction in crude oil to that already agreed upon at the organization’s meeting at the end of last year.
In this way, Saudi Arabia will apply an additional reduction of half a million barrels per day, the Emirates 144,000 barrels per day, Kuwait 128,000 barrels per day, Iraq 211,000 and Oman 40,000, according to the official news agencies of these Arab countries. Likewise, Russia has decided to extend until the end of the year the production cut of 500,000 barrels of crude oil per day that it was implementing from March to June.
That means that, starting in May, there will be about 1 million barrels per day less crude on the market than expected.
