US, WASHINGTON (ORDO NEWS) — The United Arab Emirates (UAE), together with Kuwait, will help Saudi Arabia to implement plans to accelerate the reduction of surplus oil in the market and together will reduce production in addition to the previous commitments under the OPEC + deal.
The UAE in June will reduce oil production by 100 thousand barrels per day in addition to its obligations under the OPEC + deal, said oil minister Suheil al-Mazrui.
Kuwait will also reduce production in June – by 80 thousand barrels of oil per day in excess of obligations under the OPEC + deal, the country’s oil minister, Khaled al-Fadyl, told the Kuna state agency.
The Saudi Arabian Ministry of Energy instructed the state-owned oil company Saudi Aramco to cut oil production by another 1 million barrels per day in June in addition to the cut agreed upon under the OPEC + deal, Reuters.
As a result, the kingdom’s overall decline in production will be about 4.8 million barrels per day relative to the April production level, said a spokesman for the Saudi Ministry of Energy. “Thus, the production of the kingdom in June after targeted and voluntary cuts will amount to 7.492 million barrels per day,” he said.
Last month, OPEC + participants agreed on a reduction in production from May 1 to support the oil market, which experienced a sharp drop in prices amid the coronavirus pandemic. 23 countries agreed to reduce production by a total of 9.7 million barrels per day.
Another 9 countries outside OPEC + announced plans to reduce production to support the deal. In this case, the total reduction can reach up to 20 million barrels per day. Saudi Aramco, as reported, began to reduce oil production at the end of April, without waiting for an agreed date to start cutting OPEC + production. Aramco began cutting production from about 12 million barrels per day to reach an agreed level of 8.5 million barrels per day.
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