Saudi Arabia and other OPEC plus countries together have announced a cut of 11.50 lakh barrels per day in crude oil production. These countries say that they are taking these steps to stabilize the price of crude oil in the international market. Earlier, it has been said these countries can announce a cut of 2 million barrels.
A consensus was also reached in the virtual meeting of the ministers of these countries. The ministers of Saudi Arabia and Russia were also included in this panel of ministers. But then it was decided to cut 11.50 lakh barrels per day.
In a tweet from the Saudi Press Agency, Saudi Arabia’s Ministry of Energy has been quoted as saying that crude oil production will be cut from May 2023 to the end of the year to control the volatility in crude oil prices in the international market. There will be a cut of five lakh barrels every day.
Russia has said that it will continue to cut production by half a million barrels per day until the end of 2023. At the same time, the United Arab Emirates has said that it will cut its production by 1,44,000 barrels every day. Oman has announced a cut of 40 thousand barrels every day.
To prevent the fall in oil prices after the banking crisis, OPEC plus countries, including Saudi Arabia, have announced a cut in crude oil production by five million barrels per day on their part.
The turmoil in the financial market caused by the financial crisis of Silicon Valley Bank and Credit Suisse Bank had reduced the demand for crude oil and its prices had come down to below $75 per barrel.
