OPEC+ Voluntary Output Cuts Amount To 1.66mbpd

The total additional voluntary production adjustment by OPEC+ will amount to 1.66mbpd according to the notes of the group’s JMMC meeting on Monday.

• The JMMC announced a total production cut of 1.66mbpd starting in May until the end of 2023.
• Output will be cut as followed: Saudi Arabia by 500kbpd, Iraq by 211kbpd, UAE by 144kbpd, Kuwait by 128kbpd, Kazakhstan by 78kbpd, Algeria by 48kbpd, Oman by 40kbpd and Gabon by 8kbpd.
• These will be in addition to the production adjustments decided in October and in addition to the voluntary adjustments by Russia of 500kbpd.
• The group said these additional cuts are a precautionary measure aimed at supporting the stability of the market.
• The next full OPEC+ ministerial meeting is scheduled for 4 June.
• Crude benchmark prices stayed relatively stable following the JMMC meeting.
• Brent JUN 23 up 5.6% at 84.36$/bbl
• WTI MAY 23 up 5.8% at 80.06$/bbl